TradeStalker's
R.B.I. Trader's Update
8 / 21 / 2008
(Published Since 1996)
...............................................
Dateline: 6:38 pm eastern time, 8/21/2008
The market opened lower on Thursday and after testing
Wednesday's late low at 1263.00 on the SP futures, they
turned up and ran to the Wednesday close at 1273.50 before
selling came in. The Nasdaq futures led the market lower as
they reached 1888.25 while the SP futures dropped to make a
little double bottom at 1265.50. The market firmed up and
after pulling back from 1274.00-1274.50 resistance, the
buyers came back in around the 1270 level and a good rally
was underway. The SP futures rallied to 1281.50 while the
Nasdaq futures made it to the 1917.00 level on the move up.
The market backed off and then the SP futures popped to a
lower high at 1280.75 and reversed. That set up a 1-2-3 top
pattern and the market sold off into the close.
The market may have turned the corner from bearish to
bullish on Thursday, but even if that's the case we won't
get a straight up rally. In fact, the way the market
struggled at the highs late Thursday, the bulls have their
work cut out for them and a decent pullback should be in the
works before any good buying comes in. The stall and drop
put a lid overhead and that should be an important hurdle
short term.
On Friday, look to get short if there is a bounce back to
the initial resistance areas that stalls or reverses. If
that plays out early, then the first pullback will need to
hold the initial support areas to avoid a bad day. If the
market happens to fall to the 1263.00-1262.50 zone on the SP
futures and cannot hold, then the 1258.00-1257.00 area needs
to hold to avoid a bad end to the week.
The initial resistance is at the 1278.00 level on the SP
futures and the 1911.50 level on the Nasdaq futures. If the
market pushes through those areas, then the key resistance
is at the 1281.00-1281.50 area on the SP futures and the
1916.00-1917.00 area on the Nasdaq futures. If the market
gets back up there again, it's a shorting opportunity with a
fairly tight stop. If those are cut through then the next
hurdles are at the 1284.50-1285.00 and 1924.50-1925.50
zones. If something happens to get the market in a good
rally mode, then look for very strong resistance at the
1292.50-1293.00 area on the SP futures.
The initial support is at the 1274.50 level on the SP
futures and the 1902.50 level on the Nasdaq futures. If
those are easily broken, then the 1270.25-1269.75 area on
the SP futures and the 1895.25-1894.50 area on the Nasdaq
futures would be key support. If those areas are broken and
the market doesn't snap right back, then a test of the
1263.00-1262.50 area on the SP futures and the 1888.25-
1887.50 area on the Nasdaq futures could be in the cards. If
those are broken, then only a reversal from the 1258.00-
1257.00 area on the SP futures will be able to stop the
market from having a bad day.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1278.00
1281.00-1281.50
1284.50-1285.00
1292.50-1293.00
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1274.50
1270.25-1269.75
1263.00-1262.50
1258.00-1257.00
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1911.50
1916.00-1917.00
1924.50-1925.50
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1902.50
1895.25-1894.50
1888.25-1887.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11438
11470-11475
11499-11502
September 2008 Dow futures support
symbols: emini = ymu8
11394
11326-11322
11308-11304
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
727.50
729.90-730.20
732.80-733.20
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
722.10
718.80-718.40
714.50-713.90
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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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