TradeStalker's
R.B.I. Trader's Update
8 / 24 / 2008
(Published Since 1996)
...............................................
Dateline: 5:28 pm eastern time, 8/24/2008
Learn how Mike Reed, a 25+ year veteran trader, finds his
nightly fixed support and resistance levels. Click here for
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The market gapped up on Friday and rallied to the 1292.50-
1293.00 resistance zone on the SP futures. After stalling
out at that zone, there was a pop up to 1294.00 that quickly
reversed (a "prairie dog") and the market finally rolled
over. The selloff found support at the 1283.00 open on the
SP futures and the market turned itself around. A rally into
the last hour was reversed after the SP futures reached
1292.25 and the Nasdaq futures made a high at 1941.25. The
end of the day was a mixed market. After the SP futures
pulled back to 1287.50, they rallied back into the close.
Meanwhile, the Nasdaq futures went the opposite way and
dropped 11 points off its high into the close.
It was an odd end of day trading action on Friday. The SP
futures closed the week at a resistance zone, while the
Nasdaq futures ended the day weak. It makes it a tough call
for the short term. However, this rally has the crowd
getting overly bullish too soon. The VIX will give a number
of sell signals if it reverses and closes up on Monday.
Also, the Nasdaq has been a good leader lately and if it has
trouble then the rest of the market will likely follow.
On Monday look for a shorting opportunity if there is early
strength as soon as the move stalls/reverses. If that plays
out and the market pulls back and holds the initial support
areas, then a reversal should occur. If the initial support
does not hold, then a sharper selloff should be underway,
possibly heading down to fill the gap left from Friday's
open for starters.
The initial resistance is at the 1293.00-1294.00 area on the
SP futures and the 1932.00-1932.50 area on the Nasdaq
futures. If those are exceeded and not quickly reversed then
the next good resistance is at the 1296.25-1297.50 area on
the SP futures and the 1937.50-1938.25 area on the Nasdaq
futures. If the market gets back up there and the move
stalls out, then be alert for a fast downdraft. However, if
the market gets back up there and doesn't show any signs of
turning at those areas, then a move back to the 1302.50-
1303.50 area on the SP futures and the 1943.50-1945.00 area
on the Nasdaq futures could be in the cards on Monday.
The initial support is at the 1287.50-1287.00 area on the SP
futures and the 1926.50-1925.50 area on the Nasdaq futures.
If those are not held, then things could be changing and the
trends could roll over. The key support would be at the
1282.75-1281.50 area on the SP futures and the 1915.00-
1913.75 area on the Nasdaq futures. If the market gets back
down there and doesn't rebound, then the 1277.25-1276.50
area on the SP futures and the 1906.50-1905.75 area on the
Nasdaq futures would be the next good support. If those
areas should break and the market doesn't turn around, then
the 1270.25-1269.75 area on the SP futures would be all
that's in the way of testing the 1263.00-1260.50 major
support zone.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1293.00-1294.00
1296.25-1297.50
1302.50-1303.50 *** key. A reversal here is a good short
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1287.50-1287.00
1282.75-1281.50 *** key. Must quickly reverse else red flag
1276.50
1270.25-1269.75
1263.00-1260.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1932.00-1932.50
1937.50-1938.25
1943.50-1945.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1926.50-1925.50
1915.00-1913.75
1906.50-1905.75
September 2008 Dow futures resistance
symbols: emini = ymu8
11633-11636
11677-11682
11726-11731
September 2008 Dow futures support
symbols: emini = ymu8
11554-11550
11481-11475
11406-11402
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
739.40-739.90
742.50-742.80
746.30-746.60
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
732.60-732.20
728.30-727.70
723.00-722.50
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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Disclaimer
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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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