TradeStalker's
R.B.I. Trader's Update
9 / 8 / 2008
(Published Since 1996)
...............................................
Dateline: 6:16 pm eastern time, 9/8/2008
The big gap up open on Monday (35 points on the SP futures)
was in the 1276.50-1277.00 zone but after a brief poke to
1278.50 the move was sold and the market began a decent
selloff. The SP futures spiked down to 1250.50 and then
bounced back up to 1265.00 in a very fast back and forth
move, and then the market sold off to new lows by noon. The
SP futures bounced from 1246.75 to 1259.75 and the move
stalled out and prices rolled over. The market went down and
tested its lows, and the test was passed as the market
caught a bid and bounced back. The move had trouble at the
1260 area on the SP futures and the 1760 area on the Nasdaq
futures, as they reversed from 1260.25 and 1760.50,
respectively. They then pulled back to the 1251.75 and
1746.00 levels and then they quickly reversed. The SP and
Nasdaq futures both pushed through that resistance and then
continued another 10 points higher before the close.
The market opened on its highs and after playing some give
back, the market ended the day on an up note. On Tuesday
look for the "sell early strength, buy the first decent
pullback" pattern to play out. It looks like the 1260.25-
1259.75 area on the SP futures could be pivotal. If the
market is going to stair-step higher, then that area will
need to hold on a pullback. Also, keep an eye on the weaker
Nasdaq futures on Tuesday. Some relative strength is needed
there soon, otherwise this bounce will not be sustainable.
The initial resistance is at the 1271.75-1272.50 area on the
SP futures and the 1783.50-1784.50 area on the Nasdaq
futures. If those are cleared, then the door is open for a
rally towards the 1278.50-1279.25 area on the SP futures and
the 1796.25-1797.25 area on the Nasdaq futures. If the
market gets up there and the move doesn't stall and/or
reverse, then the move could extend to the next decent
resistance at the 1282.50-1283.00 area on the SP futures and
the 1802.50-1804.00 area on the Nasdaq futures.
The initial support is at the 1264.25-1263.75 area on the SP
futures and the 1760.50-1760.00 area on the Nasdaq futures.
If those do not hold, then it's a heads-up for a drop
towards the 1260.25-1259.75 area on the SP futures and the
1755.00-1754.25 area on the Nasdaq futures. If the market is
changing from bearish back to bullish, then those areas
should hold on a pullback. If those are tested and cannot
turn back up, then the door would be open for a drop towards
the 1252.00-1251.50 area on the SP futures and the 1748.25-
1747.50 area on the Nasdaq futures. If those areas are not
able to hold, then we will likely go down to the 1247.00-
1246.50 area on the SP futures and the 1736.00-1735.25 area
on the Nasdaq futures. The market made a good double bottom
there on Monday. If those are broken, then the 1245.25 gap
on the daily chart should be a magnet, and potential
reversal spot. If that occurs, the gap on the daily chart
would be filled, just when those selling the break of the
Monday low take a position. If the market gets there and
then reverses back up, it could give a good rally. If 1245
on the SP futures is reached and the market doesn't quickly
reverse, then we could head back towards the 1240.25-1239.75
area on the SP futures. If that area doesn't hold, then a
test of the 1234.50-1232.50 zone could be in the cards.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1271.75-1272.50
1278.50-1279.25
1282.50-1283.00
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1264.25-1263.75
1260.25-1259.75
1252.00-1251.50
1247.00-1246.50
1245.00
1240.25-1239.75
1234.50-1232.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1783.50-1784.50
1796.25-1797.25
1802.50-1804.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1760.50-1760.00
1755.00-1754.25
1748.25-1747.50
1736.00-1735.25
September 2008 Dow futures resistance
symbols: emini = ymu8
11531-11534
11579-11584
11619-11624
September 2008 Dow futures support
symbols: emini = ymu8
11486-11483
11439-11436
11373-11368
11325-11319
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
736.20-736.50
743.70-744.50
747.20-747.80
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
731.60-731.30
728.40-727.80
722.90-722.60
719.00-718.60
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---------------------------
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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