TradeStalker's
R.B.I. Trader's Update
8 / 20 / 2008
(Published Since 1996)
...............................................
Dateline: 6:35 pm eastern time, 8/20/2008
The market popped up on the open on Wednesday and with the
SP futures reaching 1271.00 (just under 1271.50 initial
resistance), they reversed and quickly dropped to 1260.50 in
the first 40 minutes of trading and then reversed. The
market turned up and rallied fast to a 1276.75 high, but the
move didn't stick and selling took the market lower into
early afternoon. After reaching 1264.50 on the SP futures
the market bounced back to 1270 on the SP futures and 1919
on the Nasdaq futures. After a little "prairie dog" pop
just over 1270.00, the market reversed to the downside. The
drop got footing after the SP futures reached 1263.00 and
the Nasdaq futures made a new low at 1902.25. A rally off of
those levels took the SP futures to 1271.00, but the Nasdaq
futures stopped at 1916 and another pullback followed. The
SP futures dropped 5.25 points to 1265.75 while the Nasdaq
futures fell 12 points to 1904.00 and the market reversed
yet again. That reversal led to a nice rally as the SP ran
up to 1275.25 while the Nasdaq futures reached 1917.25 just
before stock trading closed.
We get the Leading Indicators 30 minutes into trading on
Thursday. The market finally showed a good underlying bid on
Wednesday and if that continues, then this oversold rally
has a chance to last for another day or so. We'll see. For
now, as long as the 1271.75-1271.25 area on the SP futures
is not broken, the trends are now pointing higher. If they
are broken, then shorting bounces will still offer the
better odds trades.
On Thursday look for a shorting opportunity if there is
early strength that then reverses. If that plays out, beware
that the first pullback will likely set up a buying
opportunity as soon as the downside momentum stalls out.
That 1271.75-1271.25 area on the SP futures will be defended
if that's going to occur. Both sides will likely be tradable
as a straight line move in either direction doesn't seem
likely in this skittish market.
The initial resistance is at the 1276.25-1276.75 area on the
SP futures and the 1918.25-1919.25 area on the Nasdaq
futures. If the market is strong it will cut right through
those areas and head for the next resistance at the 1280.75-
1281.50 area on the SP futures and the 1924.50-1925.50 area
on the Nasdaq futures. If those areas are not a problem,
then the 1284.50-1285.00 area on the SP futures and the
1936.00-1937.50 area on the Nasdaq futures would be next. If
those areas are not sold, then the key resistance short term
is at the 1292.50-1293.00 area on the SP futures and the
1942.75-1943.50 area on the Nasdaq futures.
The initial support is at the 1271.75-1271.25 area on the SP
futures and the 1912.50-1912.00 area on the Nasdaq futures.
Those should hold on a pullback if the market is strong. If
those areas are broken and the market doesn't quickly
reverse back up, then a drop to test the 1266.25-1265.75
area on the SP futures and the 1904.75-1904.00 area on the
Nasdaq futures could occur. If the market gets there and it
doesn't reverse like it should, then the 1261.00-1260.50
area on the SP futures and the 1897.00-1895.75 area on the
Nasdaq futures will likely get a test. If the market gets
back there and doesn't hold, then a test of the 1258.00-
1257.00 area on the SP futures and/or the 1892.50-1890.50
area on the Nasdaq futures will need to reverse to avoid a
bit of panicky selling.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1276.25-1276.75
1280.75-1281.50
1284.50-1285.00
1292.50-1293.00
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1271.75-1271.25
1266.25-1265.75
1261.00-1260.50
1258.00-1257.00
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1918.25-1919.25
1924.50-1925.50
1936.00-1937.50
1942.75-1943.50
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1912.50-1912.00
1904.75-1904.00
1897.00-1895.75
1892.50-1890.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11422-11424
11456-11459
11499-11502
11594-11598
September 2008 Dow futures support
symbols: emini = ymu8
11392-11389
11347-11343
11291-11286
11251-11246
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
732.80-733.20
737.60-738.10
743.80-744.20
747.60-748.00
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
728.50-728.20
726.70-726.50
723.80-723.40
721.60-721.20
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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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