TradeStalker's
R.B.I. Trader's Update
8 / 28 / 2008
(Published Since 1996)
...............................................
Dateline: 6:10 pm eastern time, 8/28/2008
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
The market gapped up on Thursday and rallied to 1293.50 on
the SP futures, and the key 1293.00-1294.00 area was
rejected. The SP futures dropped to 1288.75, and with the
1288.00 support holding, the market rallied through that
resistance and went to new highs for the day. The SP futures
reached 1298.00 and then backed off, but the pullback held
at old resistance by turning up from 1293.50. They bounced
back to 1298.75 and quickly reversed, and that pullback also
held at 1293.50. Another reversal back up took the SP
futures to 1299.00 while the Nasdaq futures moved back to a
lower high at 1921.50 with an hour left in stock trading.
The last hour was split between a strong SP futures and a
weak Nasdaq futures. They pulled back to 1295.50 and
1913.50, respectively, and then the SP futures rallied back
to 1300.00 while the Nasdaq futures popped to 1921.00. The
SP futures backed off only 3.50 points while the Nasdaq
futures dropped 17.75 points to a new low at 1903.25 before
settlement.
If you shorted the Nasdaq from the 1919 level or above, we
had a nice drop to give us 13 points profit at the close.
Lock in partial profits into early weakness and bring a stop
down to break-even on the remainder. If they fall to the
1895.50-1894.50 bring the stop down to 1911.25, at worst.
It is kind of a tough call to make, with the big divergence
between the SP and Nasdaq. It sure looks like a top on the
Nasdaq, as it had trouble most of the day while the blue
chips rallied nicely. Both the SP and Nasdaq futures settled
at discounts to their cash indexes, so early weakness was
priced in at Thursday's close. Many of my internal gauges
reached short term overbought extremes at Thursday's close
also. The weight of the evidence says the market should pull
back, and at best it will be difficult making much on the
upside from here. Shorting the bounces should offer the
better setups, even though it's end of month.
The initial resistance is at the 1302.50-1303.50 area on the
SP futures and the 1913.50-1914.00 area on the Nasdaq
futures. If those are reached, be on the lookout for a
reversal. If the market easily cuts through those areas,
then the next hurdles would be at the 1308.00-1308.50 area
on the SP futures and the 1922.50-1924.00 area on the Nasdaq
futures. If those are reached and there is not a reaction
and turn down, then we could see a rally up to the 1312.50-
1313.50 area on the SP futures and the 1931.00-1932.00 area
on the Nasdaq futures.
The initial support is at the 1294.00-1293.25 area on the SP
futures and the 1903.00-1902.25 area on the Nasdaq futures.
If those areas are not defended, then there should be some
good support near the 1288.50-1288.00 area on the SP futures
and the 1895.50-1894.50 area on the Nasdaq futures. If those
are broken, then the 1285.25-1284.75 area on the SP futures
and he 1888.50-1887.50 area on the Nasdaq futures should be
magnets. If the market gets down there, and cannot turn
around, then it will mean trouble and a trip to the 1281.50-
1281.00 is next, and if that doesn't hold then a drop
towards the 1277.00-1276.50 area on the SP futures would be
possible.
NOTE: There will not be any Intraday Updates after
noon on Friday. Enjoy your Labor Day Holiday. The
next regular update will be sent on Monday
evening, September 1st.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1302.50-1303.50
1308.00-1308.50
1312.50-1313.50
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1294.00-1293.25
1288.50-1288.00
1285.25-1284.75
1281.50-1281.00
1277.00-1276.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1913.50-1914.00
1922.50-1924.00
1931.00-1932.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1903.00-1902.25
1895.50-1894.50
1888.50-1887.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11726-11731
11781-11786
September 2008 Dow futures support
symbols: emini = ymu8
11665-11662
11629-11625
11563-11558
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
747.80-748.20
751.20-751.50
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
741.80-741.40
736.30-735.90
733.70-733.40
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
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.
www.TradeStalker.com
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.
*************************************************
No comments:
Post a Comment