TradeStalker's
R.B.I. Trader's Update
8 / 11 / 2008
(Published Since 1996)
...............................................
Dateline: 6:18 pm eastern time, 8/11/2008
After a slightly lower open on Monday, the market dipped to
1290.75 on the SP futures and then reversed. We were using
any early weakness to cover part of the short position that
was entered on Friday at the 1297-1298 zone, and it resulted
in a small profit as the market rallied though the 1297.50-
1298.00 resistance giving a scratch at worst on the
remainder. The SP futures pulled back from a 1298.50 early
high, but the dip held the 1295.00 updated support and the
market pushed higher. The steady grind higher took the SP
futures into the 1310.00-1311.00 resistance zone by early
afternoon and the market pulled back. The SP futures dropped
from 1310.50 to 1307.25 and able to hold above the 1306.50
support, they popped up to 1313.50. A pullback followed,
then a bounce to a lower high at 1312.50 reversed. That made
a 1-2-3 topping pattern and started a selloff. The SP
futures cut through the 1307.00-1306.50 updated support and
kept going until reaching 1300.25 with an hour left in stock
trading. A bounce off of that level found trouble at that
1306.50-1307.00 prior support and a drop from 1306.75 to
1297.25 followed. Buying/ short covering started with 30
minutes left and the market bounced back into the close.
The market didn't seem to like it above 1310 on the SP
futures, but did want to hold on to the 1298.00-1297.50
prior resistance turned support. After a good rally of 51.50
SP points in just a day and a half, some pullback would be
expected. If not that, then at least a good dose of
volatility should be in the cards. The market closed the day
just under a decent resistance area. If that is exceeded and
held in the early going, then those who are short will
likely be squeezed and push the market higher. However, if
the initial resistance is exceeded and then quickly turns
back down, that would likely set up a test of the late
Monday afternoon lows. That area on the SP futures is
looking like a key spot. If the market breaks and holds,
below the Monday afternoon lows, then a drop towards the
1291.50-1291.00 area on the SP futures is likely. That zone
should not be broken, especially on a close, if the market
is going to avoid trading top in this timeframe.
The initial resistance is at the 1306.50-1307.00 area on the
SP futures and the 1947.50-1948.00 area on the Nasdaq
futures. If those are broken and not quickly reversed then
it opens the door for a test of the 1312.50-1313.50 and
1965.00-1966.00 areas. Those areas were reversed on Monday,
so if there is no trouble getting through those areas, then
beware of a potential reversal near the 1318.50-1320.50 area
on the SP futures and the 1974.50-1976.00 area on the Nasdaq
futures.
The initial support is at the 1298.00-1297.50 area on the SP
futures and the 1931.50-1930.75 area on the Nasdaq futures.
If those are reached and the move stalls or quickly
reverses, then a decent double bottom could be in place and
start a decent rally. However, if those are broken, then
buyers will likely pull bids and the market could spill
towards the 1291.50-1291.00 area on the SP futures and the
1919.75-1919.00 area on the Nasdaq futures. If the market is
just pulling back and not getting back in trouble, then
those areas will be seen as a good buying opportunity and
the market should reverse quickly. If that doesn't occur,
then the 1287.50-1287.00 area on the SP futures and the
1909.50-1908.50 area on the Nasdaq futures would be all
that's in the way of dropping towards the 1281.75-1281.00
area on the SP futures.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1306.50-1307.00
1312.50-1313.50
1318.50-1320.50
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1298.00-1297.50
1291.50-1291.00
1287.50-1287.00
1281.75-1281.00
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1947.50-1948.00
1965.00-1966.00
1974.50-1976.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1931.50-1930.75
1919.75-1919.00
1909.50-1908.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11785-11788
11849-11853
11902-11911
September 2008 Dow futures support
symbols: emini = ymu8
11707-11703
11667-11663
11638-11635
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
753.30-753.90
757.70-758.20
762.20-762.80
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
747.60-747.20
737.50-736.70
731.20-730.70
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http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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PO Box 9783, Ft Wayne, IN, 46899
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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