TradeStalker's
R.B.I. Trader's Update
7 / 27 / 2008
(Published Since 1996)
...............................................
Dateline: 5:43 pm eastern time, 7/27/2008
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The market opened higher on Friday and quickly pulled back
from 1258.50 to 1252.25 on the SP futures in the first 15
minutes of trading. That pullback held the Thursday lows and
turned up, and the SP futures rallied towards the 1263.25-
1263.75 resistance zone. Off of a 1263.00 high, the SP
futures dropped 8 points to 1254.75 and then bounced back.
The bounce reached 1262.50 and the market reversed again,
falling 5.50 points on the SP futures to 1257.00. Another
pop followed, but it didn't clear the key resistance, and
the SP futures fell to test the 1251.50-1251.00 initial
support zone. The test passed, as the SP futures reversed
off of a 1251.00 low and rallied to the updated resistance
at 1258.50. The SP futures dropped 6.25 points to 1252.25
and bounced back to 1258.50 at the 4 pm close for stocks.
After stocks closed, the SP futures dropped 5.25 points to
1253.25 and settled at a 3.96 point discount to the cash
index.
The market spent Friday playing ping-pong between resistance
and support. Shorting the bounces as soon as the move
stalled/reversed proved to be the better odds trades on
Friday. On Monday, in order to get something going on the
upside, the market will need to clear the initial resistance
and not quickly reverse. If that occurs, then the next
hurdles would be pivotal at the 1262.50-1263.50 area on the
SP futures. That was the lid on Friday and was like a brick
wall for the bulls. For now, the short side should offer the
better odds trades unless that 1262.50-1263.50 area on the
SP futures is broken and not quickly reversed.
The initial resistance is at the 1258.00-1258.50 area on the
SP futures and the 1852.50-1853.50 area on the Nasdaq
futures. If those are broken, then the 1262.50-1263.50 area
on the SP futures and the 1858.50-1860.00 area on the Nasdaq
futures would be the next big hurdles. If those are
exceeded, then we could see a run towards the 1268.50-
1269.50 area on the SP futures and the 1868.75-1870.50 area
on the Nasdaq futures. If those are cleared and the market
doesn't quickly reverse, then the 1274.75-1275.00 zone could
possibly be seen.
The initial support is at the 1252.00-1251.00 area on the SP
futures and the 1837.50-1836.50 area on the Nasdaq futures.
If the market is going to avoid trouble, then those areas
should be reversed. If they are broken and the market
doesn't quickly reverse back to the upside, then the 1246.00
level on the SP futures and the 1830.50 level on the Nasdaq
futures should offer some support. That is a 50% retracement
for the SP futures. If those are broken, then the next key
support is down at the 1242.00-1241.00 area on the SP
futures and the 1823.50-1820.50 area on the Nasdaq futures.
If the market gets down there, and cannot reverse, then the
1235.50-1234.50 area on the SP futures and the 1812.50-
1811.50 area on the Nasdaq futures is probably in the cards.
If the market gets down there, be on alert for a reversal.
However, if the market gets there and shows no sign of
turning, then a drop towards the 1225.50-1224.50 could
occur.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1258.00-1258.50
1262.50-1263.50
1268.50-1269.50
1274.75-1275.00
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1252.00-1251.00
1246.00
1242.00-1241.00
1235.50-1234.50
1225.50-1224.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1852.50-1853.50
1858.50-1860.00
1868.75-1870.50
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1837.50-1836.50
1830.50
1823.50-1820.50
1812.50-1811.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11371-11375
11427-11430
11496-11501
September 2008 Dow futures support
symbols: emini = ymu8
11305-11300
11265
11245-11238
11194-11188
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
711.60-711.80
715.50-716.10
719.40-719.90
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
704.50-704.10
700.30
695.30-694.80
691.00-690.60
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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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