TradeStalker's
R.B.I. Trader's Update
8 / 12 / 2008
(Published Since 1996)
...............................................
Dateline: 6:01 pm eastern time, 8/12/2008
The market opened lower on Tuesday and then bounced back.
However, the 1301.50 level was a lid on the SP futures and
they sold off through the 1298.00-1297.50 support on the way
to a 1294.25 low. The market got some footing and bounced
back to test that 1301.50-1302.00 resistance zone. After
reaching 1301.75, the SP futures pulled back to 1297.00 and
then popped up again. The move fizzled and reversed from
1300.50 on the SP futures and they sold off to test the low
by 2 pm eastern time. A bounce off of the 1294.25 low on the
SP futures didn't stick, and they pulled back to test that
level again. One more bounce to 1299.00 failed, and then the
l1294.25 low broke and the downside gathered steam. The SP
futures nose-dived to 1285.25 with about 20 minutes left in
stock trading, and then the SP futures bounced back to the
1291-1292 zone by the close.
On Wednesday we get Retail Sales before the open. This
action looks like the market is forming a wide trading
range, with a downside bias at the moment. If there is early
weakness on Wednesday, and the market reverses in the first
40 minutes of trading, it should set up a trade on the long
side. If that plays out, don't fall in love with that trade
as the first decent bounce will likely be sold as soon as
the move fizzles. If this works out early, then the bounce
high would be an important resistance level, especially if a
rally can not clear the 1300.50-1301.50 area on the SP
futures.
The first hurdles on Wednesday are at the 1292.00-1292.50
area on the SP futures and 1947.50-1948.00 area on the
Nasdaq futures. If the market pops through those areas, then
there should be some resistance at the 1294.50-1295.25 area
on the SP futures and 1955.00-1956.00. If those are not a
problem and the market goes right through those areas, then
the 1300.50-1301.50 and 1961.00-1961.50 areas should be key
resistance. If those are exceeded, then the 1306.25-1307.00
area on the SP futures and 1968.00-1969.00 area on the
Nasdaq futures would be a potential reversal area for the
market.
The initial support is at the 1285.75-1285.25 area on the SP
futures and 1935.50-1934.75 area on the Nasdaq futures. If
the market gets down there, and doesn't quickly turn back
up, then the 1282.25-1281.25 area on the SP futures and
1930.75-1929.50 area on the Nasdaq futures would be next.
Those areas shouldn't break if the market is going to avoid
trouble. If the market gets down there, and can not quickly
reverse and start a run to the upside, then the SP futures
would need to hold the 1276.75-1275.50 area to avoid
breaking down and putting itself in danger of testing the
July lows.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1292.00-1292.50
1294.50-1295.25
1300.50-1301.50
1306.25-1307.00
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1285.75-1285.25
1282.25-1281.25
1276.75-1275.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1947.50-1948.00
1955.00-1956.00
1961.00-1961.50
1968.00-1969.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1935.50-1934.75
1930.75-1929.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11657-11661
11706-11711
11733-11735
11768-11772
September 2008 Dow futures support
symbols: emini = ymu8
11590-11586
11566-11562
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
747.60-748.00
750.70-751.00
754.40-754.80
757.70-758.20
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
742.50-742.00
729.70-729.40
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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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