TradeStalker's
R.B.I. Trader's Update
9 / 3 / 2008
(Published Since 1996)
...............................................
Dateline: 7:16 pm eastern time, 9/3/2008
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 opened lower on Wednesday and the early weakness
was reversed. The SP futures poked into the 1272.00-1271.50
initial support zone and turned up, and the bounce took the
SP futures to 1280.00. The market went back and tested the
lows and another pop up to 1281.00 was quickly reversed. The
bounces were not holding and when the 1272.00-1271.50 zone
was broken, the downside continued until reaching 1265.50 on
the SP futures. A bounce back to 1272.75 on the SP futures
occurred as the Beige book release approached. The initial
reaction was to the downside, but the after the SP futures
reached 1268.50, the market reversed back to the upside and
bounced back to 1274.25 on the SP futures. The market ended
the day chopping around just above the 1266 level on the SP
futures and managed to get to 1276.50 before the close.
Since the Tuesday morning highs to Wednesday afternoon lows,
the SP futures lost 38 points while the Nasdaq futures lost
98 points. That was enough to get a bounce off of important
support on Wednesday. The market finally closed on an up
note, able to hold that important support area. This bounce
might last for a day or so, but at the moment the market
hasn't shown enough to say it's safe to jump in and be
aggressively long. It's been quite the opposite, in fact.
On Thursday look for the "sell early strength, buy the first
decent pullback" move in the early going. As long as the
first good pullback can hold at the Wednesday low areas,
then a rally from support is still possible. However, if the
Wednesday low areas are not able to hold, then we could see
a pretty good drop as stops gets triggered.
The first good resistance is at the 1279.50-1280.50 area on
the SP futures and the 1956.50-1957.50 area on the Nasdaq
futures. If those are reached and not quickly reversed, then
the next resistance is at the 1284.00-1284.50 area on the SP
futures and the 1867.50-1868.50 area on the Nasdaq futures.
If those are exceeded, then there should be very good
resistance at the 1288.50-1289.25 area on the SP futures and
the 1876.50-1877.50 area on the Nasdaq futures. That's as
far as a bounce should go before trouble sets in again. If
they do not turn the market back down, then we could see the
1291.50-1292.00 area on the SP futures
The initial support is at the 1272.50-1272.00 area on the SP
futures and the 1829.00-1828.25 area on the Nasdaq futures.
If those are broken, then it's a heads up that the 1266.50-
1265.50 area on the SP futures and the 1823.00-1821.50 area
on the Nasdaq futures could be tested. If those are reached
and buyers don't step to the plate, then an air-pocket type
of drop could occur. If that happens, the market would need
to hold at the 1262.50-1261.50 area on the SP futures and
the 1818.00-1816.50 area on the Nasdaq futures and reverse
back up through the 1266.50 area to avoid a sharp drop
lower. The 1258.00-1257.50 area on the SP futures and the
1808.50-1807.50 area on the Nasdaq futures would be minor
support that could cause a reversal if the move is a fake-
out.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1279.50-1280.50
1284.00-1284.50
1288.50-1289.25
1291.50-1292.00
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1272.50-1272.00
1266.50-1265.50
1262.50-1261.50
1258.00-1257.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1956.50-1957.50
1867.50-1868.50
1876.50-1877.50
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1829.00-1828.25
1823.00-1821.50
1818.00-1816.50
1808.50-1807.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11563-11569
11603-11611
11661-11666
September 2008 Dow futures support
symbols: emini = ymu8
11487-11483
11428-11420
11394-11388
11344-11340
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
743.60-744.00
747.80-748.20
751.80-752.30
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
740.00-739.70
736.60-736.10
732.90-732.20
725.40-725.00
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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Disclaimer
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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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