TradeStalker's
R.B.I. Trader's Update
12 / 02 / 2008
(Published Since 1996)
...............................................
Dateline: 7:02 pm eastern time, 12/02/2008
The market opened higher on Tuesday, but the strength was
sold into and the SP futures dropped from 830.50 to 817.75
in the first 30 minutes of trading. The Nasdaq futures
tested its Monday low while the SP futures tested Monday's
closing range and buyers stepped to the plate. It was a
trend up move to 848.00 on the SP futures, and after pulling
back they popped up to a lower high and reversed. That
started a selloff and the SP futures went to test its early
low at 817.75 around 2:30pm. A reversal off of that level
started a volatile stair-step higher as the SP futures
reached the 849.50-850.00 area just before the close.
The market is bouncing around in a big trading range, and
with good sized swings in both directions. So, if there is
further strength on Wednesday, it will set up a shorting
opportunity as soon as the upside loses its momentum and
reverses. On the other side of the coin, the bulls are ready
to buy on the deeper retrenchments. It is the opposite kind
of setup, where the market gets stretched, loses its
momentum and reverses. This is what we will likely see as we
get to the Friday Employment report.
The initial resistance is at the 849.50-850.75 area on the
SP futures and 1136.75-1138.00 area on the Nasdaq futures.
If those are reached and reversed in the early going, then
the market is probably going to be weak to begin with If
those areas are easily exceeded, then there should be some
resistance near the 857.00-858.00 area on the SP futures and
1147.50-1149.00 area on the Nasdaq futures. If the market
doesn't reverse from there, then the door would be open for
a run towards the 970.75-871.50 area on the SP futures and
1162.50-1164.00 area on the Nasdaq futures. That would be a
sizable rally, so if the market gets there and the move
stalls out and begins to roll over, get short with a fairly
tight stop. However, if the market plows through those areas
without trouble, then there should be strong resistance at
the 880.50-882.00 area on the SP futures and 1171.50-1173.00
area on the Nasdaq futures.
The initial support is at the 832.00-831.50 area on the SP
futures and 1110.00-1108.50 area on the Nasdaq futures.
Those areas should hold if the market is strong. If broken,
and not quickly reversed, then it looks like there should be
important support at the 823.50-823.00 area on the SP
futures and 1101.75-1101.00 area on the Nasdaq futures. If
the market can reverse from those areas, we could get a
decent rebound. However, if those are not held, then the key
support is at the 818.00-817.75 area on the SP futures and
1091.00-1090.00 area on the Nasdaq futures. That was a
double bottom on Tuesday, so if it doesn't hold then we
should see a slide towards the 813.00-812.50 area on the SP
futures and 1084.00-1083.00 area on the Nasdaq futures. If
those are not held, then the 808.00-807.50 area on the SP
futures and 1078.50-1076.50 area on the Nasdaq futures is
next. There is major support at the 802.00-799.50 area on
the SP futures and 1071.50-1069.50 area on the Nasdaq
futures if the market gets hit with sustained selling on
Wednesday.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
849.50-850.75
857.00-858.00
870.75-871.50
880.50-882.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
832.00-831.50
823.50-823.00
818.00-817.75
813.00-812.50
808.00-807.50
802.00-799.50
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1136.75-1138.00
1147.50-1149.00
1162.50-1164.00
1171.50-1173.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1110.00-1108.50
1101.75-1101.00
1091.00-1090.00
1084.00-1083.00
1078.50-1076.50
1071.50-1069.50
December 2008 Dow futures resistance
symbols: emini = ymz8
8440-8445
8522-8528
8555-8563
8695-8702
December 2008 Dow futures support
symbols: emini = ymz8
8264-8257
8180-8175
8136-8132
8082-8077
8022-8014
7968-7961
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REMINDER:
Real Time subscribers can view these updates on
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http://www.tradestalker.com/members
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG).
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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