TradeStalker's
R.B.I. Trader's Update
9 / 1 / 2008
(Published Since 1996)
...............................................
Dateline: 5:11 pm eastern time, 9/1/2008
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 getting short on the Nasdaq on Thursday afternoon, the
market gave us a big down open on Friday. The market bounced
back to the Thursday closes and then reversed and resumed
the downtrends. Shortly after noon the SP futures reached
1284.00 while the Nasdaq futures found a bottom at 1867.50
and then an early afternoon bounce followed. The SP futures
made it to 1291.75 while the Nasdaq futures reached 1885.25
with about 90 minutes left in the trading day. A 1-2-3 top
formed on the SP futures and the market rolled over again
and sold off into the close. The SP futures made its low in
the 1281.50-1281.00 zone while the Nasdaq futures made a
higher low at 1870.50. While the cash indexes closed on
their lows, the futures firmed up a bit into the close.
The sideways trading range on the SP and Dow is being tested
on both sides. This pattern is usually a bearish pattern.
The 1266 level on the SP500 cash needs to be broken before a
sustainable move occurs on the downside. On the upside, the
SP500 will need to get over 1300 and not quickly reverse to
get a move going on the upside.
The market is just a day off of extremes on my internal
gauges and sentiment looks like it might overshoot on the
bearish side soon. On Tuesday, look for shorting
opportunities on a bounce that fails near the initial
resistance zones. It will take a break and hold over that
resistance to get the market out of the trouble it is in at
the moment. A quick trade on the long side would set up
if there is a lower open that reverses, but if this occurs
then
be prepared to cover and get short when the first bounce
fizzles.
The first hurdles are at the 1285.00-1285.75 area on the SP
futures and the 1880.50-1881.25 area on the Nasdaq futures.
The next resistance is at the 1291.25-1292.00 area on the
SP futures and the 1888.00-1889.00 area on the Nasdaq
futures. It would take a break over those areas that doesn't
quickly reverse to get out of danger short term. If the
market gets up there and doesn't reverse, then a pop towards
the 1298.00-1298.75 area on the SP futures and the 1901.50-
1903.25 area on the Nasdaq futures is likely. If the market
gets up there and isn't rejected, then a pop to the 1302.50-
1303.50 area on the SP futures and/or the 1915.50-1916.50
area on the Nasdaq futures is possible before a reversal. If
there is no reversal, then a short squeeze could push the SP
futures towards the 1307.50-1308.00 area.
The initial support is at the 1281.50-1281.00 area on the SP
futures and the 1871.00-1870.50 area on the Nasdaq futures.
If those areas are not defended, then the key support should
be at the 1277.00-1276.50 area on the SP futures and the
1865.50-1864.50 area on the Nasdaq futures. If the market
cannot reverse from those areas, then a spill towards the
1273.00-1272.50 area on the SP futures and the 1858.50-
1857.25 area on the Nasdaq futures is likely. If the market
cannot hold those areas, then the 1266 level on the SP500
cash (especially on a close) must be reversed to avoid a
panic selloff and potential crashette type dive lower.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1285.00-1285.75
1291.25-1292.00
1298.00-1298.75
1302.50-1303.50
1307.50-1308.00
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1281.50-1281.00
1277.00-1276.50
1273.00-1272.50
1266 {SP500 cash}
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1880.50-1881.25
1888.00-1889.00
1901.50-1903.25
1915.50-1916.50
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1870.00-1869.50
1865.50-1864.50
1858.50-1857.25
September 2008 Dow futures resistance
symbols: emini = ymu8
11583-11587
11621-11624
11692-11697
11726-11731
September 2008 Dow futures support
symbols: emini = ymu8
11521-11517
11465-11462
11421-11417
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
738.90-739.30
742.10-742.50
746.10-746.50
750.30-750.60
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
736.50-736.10
733.80-733.40
728.60-727.50
---------------------------
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