TradeStalker's
R.B.I. Trader's Update
8 / 27 / 2008
(Published Since 1996)
...............................................
Dateline: 6:15 pm eastern time, 8/27/2008
Learn how Mike Reed, a 25+ year veteran trader, finds his
nightly fixed support and resistance levels. Click here for
more details: http://www.tradestalker.com/RTGLive.htm
After a flat open on Wednesday, the SP futures popped up to
1275.75 and reversed. But after a 5.25 point pullback to
1269.50, good buying came in and the market sprinted higher.
The rally stalled and reversed from just under the 1280.50-
1281.00 resistance area, but the pullback undercut the
updated 1273.50 support by 1 tick before reversing and
rallying to new highs for the day. The SP futures reached
1285.25 which happened to be at the 1285.00-1285.50
resistance area and then pulled back to the 1280.50 updated
support. The market bounced off of the 1280.75 level and per
the 4th intraday update that pop back up to 1283.75 reversed
and set up a good shorting opportunity. The SP futures
dropped to 1279.75 before turning back up. The rally took
the SP futures back to the 1284.75 level and then they
reversed again. The selloff was a different end of the day,
as the 1279.50 level turned into resistance and the SP
futures dropped to 1276.25 in the last 10 minutes of stock
trading. The SP futures stalled out and after getting
through 1279.50, they ran up to 1283.00 by the close.
The market ended the day trapped in a narrow range. We get
Jobless Claims and Preliminary GDP before the open on
Thursday, and that's probably why. The Nasdaq has been a
half of a step ahead of the rest of the market lately. It
didn't end the day well, but it did hold at a support area.
The market sentiment is getting overly bullish again, so if
the market can hold together into Friday, it should set up a
sizable selloff if everything comes together.
On Thursday, look for a shorting opportunity in the early
going if the market goes up and tests the initial resistance
and stalls/ reverses. If that occurs, be sure to keep an eye
on the Nasdaq futures for the turn, as they were
aggressively sold at the 1915.50-1916.50 area. If a pop up
to those areas acts that way, then it should set up a very
good trade on the short side. On the other side of the coin,
if the market opens lower and the initial support can hold
and the market stalls and reverses, then it should set up
one more decent run to the upside. Aside from that, the
market will need to break and hold above or below the
afternoon ranges in order to get a directional move going in
either direction. The reward/risk is in favor the short side
given the double top at resistance on the SP futures and
a poor close for the Nasdaq futures.
The initial resistance is at the 1285.00-1285.50 area on the
SP futures and the 1915.50-1916.50 area on the Nasdaq
futures. If the market gets through those areas and doesn't
quickly reverse, then the next big hurdles are at the
1293.00-1294.00 area on the SP futures and the 1932.00-
1932.50 area on the Nasdaq futures. If those are reached and
not sold, then a move towards the 1296.50-1297.25 area on
the SP futures and the 1937.50-1938.25 area on the Nasdaq
futures is likely before a reversal occurs. If the market
gets up there and shows no sign of reversing, then the
1302.50-1303.50 area on the SP futures and the 1943.50-
1945.00 area on the Nasdaq futures would be big resistance
short term.
The initial support is at the 1276.75-1276.25 area on the SP
futures and the 1897.00-1896.00 area on the Nasdaq futures.
If those areas don't hold, then a short term top could be in
place. The next support is at the 1273.00-1272.50 area on
the SP futures and the 1890.00-1889.25 area on the Nasdaq
futures. If those are cut through, then the 1269.50-1268.50
area on the SP futures and the 1884.75-1883.50 area on the
Nasdaq futures would need to hold to avoid a bad day. The
next support would be at the 1266.00-1265.75 area on the SP
futures and the 1882.75-1882.00 area on the Nasdaq futures,
and then the major support is down at the 1263.00-1262.50
area on the SP futures and the 1877.00-1876.50 area on the
Nasdaq futures.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1285.00-1285.50
1293.00-1294.00
1296.50-1297.25
1302.50-1303.50
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1276.75-1276.25
1273.00-1272.50
1269.50-1268.50
1266.00-1265.75
1263.00-1262.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1915.50-1916.50
1932.00-1932.50
1937.50-1938.25
1943.50-1945.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1897.00-1896.00
1890.00-1889.25
1884.75-1883.50
1882.75-1882.00
1877.00-1876.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11549-11553
11633-11636
11677-11682
11726-11731
September 2008 Dow futures support
symbols: emini = ymu8
11464-11462
11440-11437
11419-11414
11370-11368
11344-11340
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
736.00-736.30
739.40-739.90
742.50-742.80
746.30-746.60
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
729.00-728.60
726.70-726.20
723.40-723.10
718.90-718.50
715.90-715.50
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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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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