TradeStalker's
R.B.I. Trader's Update
9 / 25 / 2008
(Published Since 1996)
...............................................
Dateline: 6:10 pm eastern time, 9/25/2008
The market opened higher on Thursday and after a small
reaction off of the 1209.50-1210.00 area on the SP futures
and 1692.00-1692.75 area on the Nasdaq futures, the market
pushed higher and rallied to make a little double top at
1224.50 on the SP futures. The market rolled over and
dropped 14 points on the SP futures and 27.50 points on the
Nasdaq futures, and then the market bounced back. A test of
1224 on the SP futures failed and selling returned with 30
minutes left in stock trading. The SP futures fell 15 points
to 1208.25 while the Nasdaq futures fell 30.75 points to
1675.25 in the final minutes of trading.
The SP futures look like they want to hold up and rally
further. However, the Nasdaq futures ended the day poorly.
If that divergence isn't ironed out early on Friday, then
the market will be in for some trouble. The bounces aren't
sticking, but the dips are being bought too, so that trading
range action could continue for another day or so barring
a crashette type of move.
On Friday use early strength for a shorting opportunity. If
on the other hand the market opens lower on Friday, look for
a reversal in the first 40 minutes to set up a trade on the
long side. Just don't fall in love with the long side up
here, as the market could get hit with another sharp drop
soon. Another test of the Thursday afternoon highs that
fails could start a decent selloff. The market is vulnerable
unless there is a break and hold over the 1223.50-1224.50
area on the SP futures and the 1705.00-1706.00 area on the
Nasdaq futures. If we get more back-and-forth action, the SP
futures will be a better vehicle for longs and the Nasdaq
futures will be better for shorting opportunities.
The initial resistance is at the 1223.50-1224.50 area on the
SP futures and the 1705.00-1706.00 area on the Nasdaq
futures. The market is a short on a bounce that stalls out
under those areas. If those are not rejected, then we could
go for the 1232.50-1233.00 area on the SP futures and
1713.50-1714.50 area on the Nasdaq futures. A reversal from
those areas would set up a great shorting opportunity.
However, if those are exceeded, then the 1235.00 and 1719.00
levels would be next. If the market is strong enough to get
through those levels, then the major resistance is at the
1241.25-1242.25 area on the SP futures and 1727.50-1728.50
area on the Nasdaq futures.
The initial support is at the 1207.50-1207.00 area on the SP
futures and 1673.00-1672.75 area on the Nasdaq futures. If
those areas are reached, beware of a reversal. If those
areas are cut through, then the 1198.00-1197.50 area on the
SP futures and 1662.75-1661.50 area on the Nasdaq futures
would be next. If those areas are broken, then we could
slide towards the 1193.00 and 1656.50 areas. A reversal off
of those levels would be likely. If those are not held, then
the 1188.00-1187.00 area on the SP futures and 1651.00-
1649.50 area on the Nasdaq futures. If those are not bought,
then the major support short term is at the 1181.00-1180.00
area on the SP futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
1223.50-1224.50
1232.50-1233.00
1235.00
1241.25-1242.25
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
1207.50-1207.00
1198.00-1197.50
1193.00
1188.00-1187.00
1181.00-1180.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1705.00-1706.00
1713.50-1714.50
1709.00
1727.50-1728.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1673.00-1672.75
1662.75-1661.50
1656.50
1651.00-1649.50
December 2008 Dow futures resistance
symbols: emini = ymz8
11125-11131
11203-11209
11234
11303-11309
December 2008 Dow futures support
symbols: emini = ymz8
10970-10965
10902-10898
10864
10822-10828
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REMINDER:
Real Time subscribers can view these updates on
the web at this site:
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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