TradeStalker's
R.B.I. Trader's Update
6/02/2008
(Published Since 1996)
...............................................
Dateline: 6:59 pm eastern time, 6/2/2008
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The market gapped down on Monday and the selling was
persistent until reaching 1384.00 on the SP futures about an
hour into trading. The rebound stopped at the updated
resistance at the 1388.25-1389.00 zone on the SP futures and
after a test of the 1384.00 low, they tried to get going and
leave a double bottom in place. However, that 1388.25-
1389.00 zone was a lid and the bounce stalled and when the
1384 level was broken, the downside accelerated to the
1377.75 support level. That was the last decent support in
the way going to the key 1373 area, and SP futures traded
sideways for about 20 minutes between 1380.00 and 1377.75,
but after a token lower low was made at 1377.50 on the SP
futures, the market turned back up. The updated resistance
at the 1382.00-1382.50 area was barely exceeded and the SP
futures found a new lid at 1383.00. The market pulled back,
but the 1379.25 level was as far as the dip went and then
the market turned up with a bit of gusto and took out that
1383.00 level. That level held on a pullback and the market
ended the day with a decent rally into the close.
Anyone who followed along with me when I said I was buying
puts on Friday afternoon (in the "chat room") had to be
happy to see red numbers before the open on Monday. The
break on Monday might take a few days to digest, but the
bounces will likely have a difficult time of holding. The
internal gauges are still pretty much neutral, however there
was a good dose of fear injected into participants on
Monday, as the VIX jumped 11% on Monday.
It looks like we could have a trading range as long as the
initial support areas can hold on a pullback, so on Tuesday
look for trades on both sides of the market. The day ended
with prices in uptrends, so if there is early strength it
should set up a very good shorting opportunity in the early
going. If that plays out, beware that the first decent
pullback will likely be bought once the momentum fizzles.
For now, it looks like the intraday trends will be up as
long as the initial support areas hold. If buyers don't
defend the initial support areas, then the market will back
in trouble.
The initial resistance is at the 1388.00-1388.25 area on the
SP futures and the 2015.75-2016.50 area on the Nasdaq
futures. If those areas are reached early and the market
stalls/reverses, it sets the stage for another decent drop.
However, if those are exceeded and not quickly reversed,
then the next good resistance should be at the 1394.50-
1395.00 area on the SP futures and the 2024.25-2025.50 area
on the Nasdaq futures. If a rally doesn't turn down from
there, then there should be very strong resistance at the
1398.00-1398.50 area on the SP futures and the 2030.75-
2032.00 area on the Nasdaq futures.
The initial support is at the 1383.25-1383.00 area on the SP
futures and the 2001.50-2000.50 area on the Nasdaq futures.
Those areas were pivotal late on Monday, so if those areas
are not able to hold on a pullback and turn up, then the
market will be back in poor shape and a move to the 1379.25
level on the SP futures and the 1993.50 level on the Nasdaq
futures would need to hold. If the market doesn't hold there
either, then the 1378.00-1377.50 area on the SP futures and
the 1991.00-1990.00 area on the Nasdaq futures would need to
hold and make a double bottom to avoid further technical
damage. If those lows from Monday break and the market
doesn't snap right back, then the 1373.00-1372.50 area on
the SP futures and the 1982.50-1980.25 area on the Nasdaq
futures could be magnets. A move to those areas would be
"must hold" otherwise we could see the downside pick up
steam.
June 2008 SP futures resistance
symbols: emini = esm8 / big contract =spm8
1388.00-1388.25
1394.50-1395.00
1398.00-1398.50
June 2008 SP futures support
symbols: emini = esm8 / big contract =spm8
1383.25-1383.00
1379.25
1378.00-1377.50
1373.00-1372.50
June 2008 Nasdaq futures resistance
symbols: emini = nqm8 / big contract = ndm8
2015.75-2016.50
2024.25-2025.50
2030.75-2032.00
June 2008 Nasdaq futures support
symbols: emini = nqm8 / big contract = ndm8
2001.50-2000.50
1993.50
1991.00-1990.00
1982.50-1980.25
June 2008 Dow futures resistance
symbols: emini = ymm8
12522-12528
12584-12592
12612-12618
June 2008 Dow futures support
symbols: emini = ymm8
12475-12472
12443
12425-12420
12379-12374
June 2008 Russell futures resistance
symbols: emini = er2m8 / big contract = er2m8
742.00-742.50
746.30-746.90
748.50-748.90
June 2008 Russell futures support
symbols: emini = er2m8 / big contract = er2m8
738.50-738.10
734.30
732.80-732.50
732.80-732.50
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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