TradeStalker's
R.B.I. Trader's Update
9 / 14 / 2008
(Published Since 1996)
...............................................
Dateline: 5:17 pm eastern time, 9/14/2008
The market opened lower on Friday and well below the
Thursday closes, but buyers stepped to the plate after about
20 minutes of trading and the market went into rally mode.
The move found trouble at the 1255.50-1256.00 area on SP
futures and just under the 1785.50-1787.00 resistance area
on Nasdaq futures, and off of a 1256.50 high on the SP
futures, a pullback followed. The updated support at 1248.00
was reached and the market bounced back, but after some
churning that 1248.00 level was broken and the downside
reasserted itself. A drop to 1240.75 was bought and the
market bounced back to the areas from where the breakdown
started. That move was sold and the SP futures pulled back
5.75 points and then bounced back to 1256.50 resistance. A
little 1-2-3 top formed and the SP futures dropped 10 points
to 1246.25 with 20 minutes left in the trading day. The
market showed its resiliency by turning back up and rallying
to a new high at 1259.00 just before settlement.
The SP futures settled more than 5 points over fair value on
Friday, so the market has an early rally priced in if that
holds. The sentiment is getting overly bearish, even with
the market closing at its highs the last 2 days of last
week. We get the Fed decision on interest rate policy on
Tuesday of this week. That day will likely be the key day
this week as the market recovers from a drop to 1212.50 on
the SP futures and 1720.75 on the Nasdaq futures last week.
The intraday chart on the SP500 cash and futures is still in
a big wedge pattern. If that breaks, then the market could
cave in rather easily. At the moment, the top of the wedge
is near the initial resistance area and the bottom side is
near the initial support area. If there is sustained trading
below the initial support then the market could be back
under pressure. However, as long as that support isn't
broken and held, the bulls will still be in control.
The initial resistance is at the 1260.50-1261.00 area on the
SP futures and the 1782.50-1784.50 area on the Nasdaq
futures. If those are not a problem, then the 1266.00-
1267.00 area on the SP futures and the 1792.50-1794.50 area
on the Nasdaq futures would be the next hurdles to clear. If
the market gets up there and doesn't stop, then we could go
for the 1272.00-1272.50 area on the SP futures and the
1801.50-1803.00 area on the Nasdaq futures.
The initial support is at the 1246.50-1246.00 area on the SP
futures and the 1767.00-1766.50 area on the Nasdaq futures.
If the market doesn't quickly turn back up from those areas,
then the market could be rolling over. The next support is
at the 1240.75-1240.00 area on the SP futures and the
1756.25-1754.75 area on the Nasdaq futures. If those areas
are not quickly reversed, then the 1231.50-1231.00 area on
the SP futures and the 1746.50-1745.50 area on the Nasdaq
futures is a key support area for each index and will need
to hold to avoid trouble.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
1260.50-1261.00
1266.00-1267.00
1272.00-1272.50
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
1246.50-1246.00
1240.75-1240.00
1231.50-1231.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1782.50-1784.50
1792.50-1794.50
1801.50-1803.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1767.00-1766.50
1756.25-1754.75
1746.50-1745.50
December 2008 Dow futures resistance
symbols: emini = ymz8
11474-11479
11521-11528
11572-11577
December 2008 Dow futures support
symbols: emini = ymz8
11352-11348
11308-11303
11242-11238
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Real Time subscribers can view these updates on
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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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