TradeStalker's
R.B.I. Trader's Update
9 / 7 / 2008
(Published Since 1996)
...............................................
Dateline: 5:54 pm eastern time, 9/7/2008
The market gapped down on Friday's Jobs numbers and it was
downhill for the first 90 minutes of trading. The SP futures
reached 1216.50 while the Nasdaq futures held at its
1741.50-1738.50 support zone and the market turned back up.
By early afternoon the gaps were filled on the daily charts,
and the market pulled back. The 1231.00 level on the SP
futures was a floor and unable to break down per usual of
late, buying came back in and took the market to new highs
for the day in the last 90 minutes of trading. The Nasdaq
futures made their high before 3 pm at 1780.50, while the SP
futures went to the 1245.00-1245.75 resistance zone before
dropping into the close.
That was a nice comeback in the Blue Chips, but the Nasdaq
averages still finished in the red on Friday. The VIX
reversed from a short term extreme, and the buy signals
might be enough to hold the market up short term. Even if
there is a bit more upside coming, the Friday lows will
likely be tested or broken before a sustainable rally
occurs.
On Monday the initial support must hold to avoid a reversal
and turn the intraday trends back down. Look to short early
strength as soon as the move fizzles. A pop up to test the
Friday highs that reverses would set up a shorting
opportunity. If that plays out, then the first decent
pullback should set up a buying opportunity if the initial
support can hold. If the 1236.50-1236.00 area on the SP
futures doesn't hold, then the 1231.00-1230.50 area would
need to have buyers step to the plate, otherwise there is
another sizable selloff coming.
The initial resistance is at the 1245.00-1245.75 area on the
SP futures and the 1779.00-1780.50 area on the Nasdaq
futures. If those are easily exceeded and not quickly
reversed, then the 1252.50-1253.25 area on the SP futures
and the 1792.00-1793.00 area on the Nasdaq futures would be
the next hurdles to get over. A rally should fail at or
below those areas if the market is still in a fragile mood.
If those are reached and not rejected, then the market could
"revisit the scene of the crime" and test the 1261.50-
1262.50 area on the SP futures and/or the 1812.50-1814.00
area on the Nasdaq futures. Those should be difficult to get
through unless the market has an outside influence kick the
upside in gear.
The initial support is at the 1236.50-1236.00 area on the SP
futures and the 1766.50-1766.00 area on the Nasdaq futures.
Those areas were pivotal on Friday afternoon and a pullback
should hold at those areas if it is going to avoid a sharper
drop. If those areas are broken, then it would open the door
for a drop towards the 1231.00 level on the SP futures and
the 1761.25 level on the Nasdaq futures. If those levels
cannot hold or quickly reverse if broken, then the 1226.50-
1226.00 area on the SP futures and the 1752.00-1750.50 area
on the Nasdaq futures would be next. If the market cannot
reverse from those areas, then a test of the 1217.00-1216.00
area on the SP futures and the 1741.50-1738.50 area on the
Nasdaq futures is in the cards and would need to hold to
avoid another big down day.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1245.00-1245.75
1252.50-1253.25
1261.50-1262.50
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1236.50-1236.00
1231.00
1226.50-1226.00
1217.00-1216.00
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1779.00-1780.50
1792.00-1793.00
1812.50-1814.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1766.50-1766.00
1761.25
1752.00-1750.50
1741.50-1738.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11247-11252
11313-11319
11397-11402
September 2008 Dow futures support
symbols: emini = ymu8
11187-11184
11152
11123-11118
11040-11034
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
722.10-722.40
726.50-727.10
731.60-732.10
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
716.20-716.00
712.80
706.70-706.30
702.20-701.80
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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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