TradeStalker's
R.B.I. Trader's Update
12 / 3 / 2008
(Published Since 1996)
...............................................
Dateline: 6:12 pm eastern time, 12/3/2008
The market opened lower on Wednesday and the SP futures
reversed and bounced 10 points from 826.50 to 836.75 before
turning back down. The market went back to test the lows and
quickly reversed back to the upside. That started a trend up
move that only paused at resistance zones on the way to
864.75 on the SP futures. After a dip, they popped back up
to 864.75 and reversed, and with a double top in place the
market sold off pretty hard. The SP futures reached 834.00
and then got turned around and rallied back over the 860
level. The pop over that level reversed from 861.75 and the
SP futures dropped to 847.00. That level became support as
the market bounced around between there and 859 on the SP
futures. With about 20 minutes left in stock trading the SP
futures were over 860, and a dip held 861.00 with 13 minutes
left in stock trading. That brought in more buying as the SP
futures pushed through the 870.75-871.50 zone and then
backed off a bit into the close.
We got the two-sided trading action on Wednesday, with some
good swings in both directions. The intraday chart pattern
is looking like a big channel/ wedge and could be vulnerable
to a decent sized selloff IF the Wednesday afternoon lows
are not held. If the market is going to continue to prove
itself strong however, then the initial support shouldn't be
broken.
If the market opens higher, then look for a reversal in the
first 20 minutes to set up a great shorting opportunity. If
that plays out, the first decent pullback should set up a
good buying opportunity, especially if the initial support
is reached and reversed. If that doesn't occur and that
support is broken and held, then there are other support
zones that will need to hold. The 848.00-847.00 area will
need to hold, otherwise the market could be rolling over for
a pretty sharp drop.
The initial resistance is at the 872.75-873.75 area on the
SP futures and the 1164.75-1166.50 area on the Nasdaq
futures. If those are not sold, then a move towards the
880.50-882.00 area on the SP futures and the 1171.50-1173.00
area on the Nasdaq futures would set up a good shorting
opportunity if the market gets up there and the move stalls
out. If those areas are exceeded and not quickly reversed,
then the 885.50-886.00 area on the SP futures and the
1179.75-1181.50 area on the Nasdaq futures would be next. If
there is a strong rally, look for good resistance at the
889.75-890.25 area on the SP futures and the 1186.50-1188.00
area on the Nasdaq futures.
The initial support is at the 859.00-858.00 area on the SP
futures and the 1153.50-1152.50 area on the Nasdaq futures.
If those areas don't hold, then the 848.00-847.00 area on
the SP futures and the 1138.50-1137.50 area on the Nasdaq
futures is a key area. If it's held, look for a bounce
that's tradable. However, if those areas do not hold, then
we could head for the 834.00 level on the SP futures and the
1116.75 level on the Nasdaq futures. That was the Wednesday
afternoon lows, and if broken, then the key support is just
below at the 832.00-831.50 area on the SP futures and the
1110.00-1108.50 area on the Nasdaq futures. If the market
cannot reverse from those areas, then we could be headed
back towards the 823.50-823.00 area on the SP futures and
the 1101.75-1101.00 area on the Nasdaq futures. If the
market is sold off pretty hard, then look for a reversal
from around the 818.00-817.75 area on the SP futures and the
1091.00-1090.00 area on the Nasdaq futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
872.75-873.75
880.50-882.00
885.50-886.00
889.75-890.25
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
859.00-858.00
848.00-847.00
834.00
832.00-831.50
823.50-823.00
818.00-817.75
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1164.75-1166.50
1171.50-1173.00
1179.75-1181.50
1186.50-1188.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1153.50-1152.50
1138.50-1137.50
1116.75
1110.00-1108.50
1101.75-1101.00
1091.00-1090.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8620-8625
8685-8691
8724-8731
8754-8760
December 2008 Dow futures support
symbols: emini = ymz8
8498-8492
8401-8395
8278
8264-8257
8180-8175
8136-8132
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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)
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.
www.TradeStalker.com
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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