TradeStalker's
R.B.I. Trader's Update
9 / 9 / 2008
(Published Since 1996)
...............................................
Dateline: 6:19 pm eastern time, 9/9/2008
After a flat open the market dropped and the first pullback
was bought. The bounce was sold as the Monday closes were
tested, and the SP futures sold off to the 1247.00-1246.50
key support zone. A bounce off of that zone stalled and sold
off from the updated 1254.50 level, and the lows were then
tested. Another bounce to test the 1254.50 level also
stalled and reversed, and the market broke through the key
support. That brought in more selling as the SP futures fell
to the 1234.50-1232.50 band of support with about an hour
left in trading. The bounce off the 1232.50 level tagging
the 20 period ema on the 5 minute chart at 1238.75 and
reversed, brining in more the selling that took the averages
to new lows for the day at the close. The SP and Nasdaq
futures made lows at 1223.50 and 1720.75 and then firmed up
to settle a few points over fair value.
On Wednesday look for an early pop to set up a shorting
opportunity. If there is early weakness instead, then look
for the move to be reversed to set up a trade on the long
side. Just don't fall in love with that side, as the bounces
that stall out should still set up better shorting
opportunities. The big resistance is now at the 1254.00-
1254.50 area on the SP futures, which would put the market
in neutral territory, so beware of another reversal if the
market gets that far on a rally attempt.
The initial resistance is at the 1228.00-1228.50 area on the
SP futures and 1734.50-1735.25 area on the Nasdaq futures.
If the market is still very weak, then those areas will turn
the market back down. However, those are exceeded, then the
market could begin a rally. There should be some resistance
at the 1238.50 level on the SP futures and 1742.50 level on
the Nasdaq futures. If those are cleared then there should
be strong resistance near the 1244.50-1245.00 area on the SP
futures and 1746.00-1747.00 area on the Nasdaq futures. If
the market gets back up there, and the move stalls out, be
alert for a reversal. However, if the market puts together a
rally that doesn't have trouble at those areas, then the
door is open for a test of the 1254.00-1254.50 area on the
SP futures and 1764.50-1765.50 area on the Nasdaq futures.
The initial support is at the 1224.00-1223.50 area on the SP
futures and 1722.00-1720.75 area on the Nasdaq futures. If
those areas a broken, and not quickly reversed, then a test
of the 1217.00-1216.50 area on the SP futures and 1712.50-
1710.75 area on the Nasdaq futures is probably in the cards.
If the market can not hold those areas, then a drop to the
1212.50-1211.50 area on the SP futures would need to hold.
If buyers can not get a reversal going from that zone, then
all that would be in the way of a complete test of the July
low would at the 1208.00-1207.50 area on the SP futures. If
broken, then that 1200.75 level on the SP futures should be
seen. If there is not a big double bottom made, then a slide
towards the 1186.00-1184.00 area on the SP futures is likely
in the cards before the market gets itself turned back up.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1228.00-1228.50
1238.50
1244.50-1245.00
1254.00-1254.50
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1224.00-1223.50
1217.00-1216.50 - KEY
1212.50-1211.50
1208.00-1207.50
1200.75 - MAJOR
1186.00-1184.00 - Next target if melt-down is in gear
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1734.50-1735.25
1742.50
1746.00-1747.00
1764.50-1765.50
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1722.00-1720.75
1712.50-1710.75
September 2008 Dow futures resistance
symbols: emini = ymu8
11261-11265
11357
11382-11387
11459-11463
September 2008 Dow futures support
symbols: emini = ymu8
11230-11225
11162-11157
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
711.20-711.60
716.20
722.90-723.40
726.80-727.40
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
707.20-706.70
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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