TradeStalker's
R.B.I. Trader's Update
8 / 19 / 2008
(Published Since 1996)
...............................................
Dateline: 6:22 pm eastern time, 8/19/2008
The SP futures gapped down on Tuesday, and about 10 minutes
into the day the 1274.00 low from Monday was reached and
after filling the gap the market quickly reasserted the
downtrends. A slow grind lower took the SP futures to
1263.00 around noon eastern time and then the market turned
up. The bounce was also slow, and after getting back over
1270 on the SP futures, the market reversed and headed back
down to test the lows. The SP futures reached 1262.75 and
tried to turn around, but the rally attempt started too
soon. After running up to 1269.00, the SP futures reversed
quickly and selling took them back to 1263.75 and then the
market chopped higher into the close.
The market is acting poorly. However, after the drubbing
it's taken, the market is getting oversold and near a spot
where a decent bounce is due. The 1262.75-1262.00 area on
the SP futures will need to hold though if they are going to
avoid slipping down to the 1258.00-1257.00 area. If that
support is broken, and not quickly reversed, then the odds
of testing the July lows will increase.
On Tuesday look for a shorting opportunity if there is early
strength that stalls out, especially if the move fizzles
near a resistance zone. If that plays out, be alert for a
reversal when the first pullback stalls out. The short side
should still offer the better opportunities until the bigger
picture trends turn up.
The initial resistance is at the 1271.50 level on the SP
futures and 1929.25 level on the Nasdaq futures. If those
are not a problem, then the 1274.50-1275.00 area on the SP
futures and 1936.50-1938.00 area on the Nasdaq futures would
be next. If those high areas from Tuesday are broken
through, then we could see the move extend towards the
1279.75-1280.25 area on the SP futures and 1942.75-1943.50
area on the SP futures. If the market rallies that far, and
still doesn't reverse, then the 1284.50-1285.00 area on the
SP futures and 1947.00-1947.50 area on the Nasdaq futures
should be difficult to get through. If they are broken, then
there should be strong resistance at the 1292.50-1293.00 and
1952.75-1954.25 areas.
The initial support is at the 1262.75-1262.00 area on the SP
futures and 1904.00-1903.00 area on the Nasdaq futures. If
those do not hold, then the 1258.00-1257.00 area on the SP
futures and 1896.00-1894.50 area on the Nasdaq futures could
be magnets. If the market can reverse from there, it should
set up a good trade on the long side. However, if those
zones are broken, then the SP futures will likely go for the
1252.00-1251.50 zone before any attempt to turn around. If
that zone doesn't hold, then it could be a big down day that
sells off into the close.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1271.50
1274.50-1275.00
1279.75-1280.25
1284.50-1285.00
1292.50-1293.00
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1262.75-1262.00
1258.00-1257.00
1252.00-1251.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1929.25
1936.50-1938.00
1942.75-1943.50
1947.00-1947.50
1952.75-1954.25
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1904.00-1903.00
1896.00-1894.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11395
11420-11424
11456-11459
11499-11502
11594-11598
September 2008 Dow futures support
symbols: emini = ymu8
11312-11308
11259-11253
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
734.00
739.60-740.10
743.80-744.20
747.60-748.00
751.50-752.00
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
725.80-725.50
721.10-720.70
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---------------------------
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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