TradeStalker's
R.B.I. Trader's Update
12 / 7 / 2008
(Published Since 1996)
...............................................
Dateline: 5:40 pm eastern time, 12/7/2008
The market opened lower on Friday and the move was instantly
reversed just like all of the big opens last week. The SP
futures went from 830.50 to 841.50 in less than 15 minutes
and then the downside resumed. The SP futures broke the key
support at the 818.00-817.75 zone and quickly reversed, and
the market tried to get going on the upside. The 828.50
resistance was a roadblock, as the move fizzled and the SP
futures dropped to 819.50 before reversing. The market
started a tepid grind higher, but after getting over the
838.50-839.00 area, the SP futures held that area on a
pullback and then the upside continued. Good buying and
shorts covering started in earnest in the last 2 hours as
the market rallied steadily into the close.
The SP futures ended the day backing away from the 880.50-
882.00 resistance zone. The short term indicators are
somewhat overbought, but not quite at across the board
extremes that gave the setup we had last Friday. The path of
least resistance should be to the upside, as the action has
been pretty good lately. However, the first good trade on
Monday should set up on the short side, as profits from a
60+ point move on the SP futures are taken into any
strength. If that plays out early, then the first decent
pullback should set up a buying opportunity. The initial
support will need to hold, otherwise a deeper retracement is
coming before buyers step back to the plate.
The initial resistance is at the 880.50-882.00 area on the
SP futures and the 1185.00-1186.25 area on the Nasdaq
futures. If the market pops up there and reverses on Monday,
it should set up a good shorting opportunity. If the market
doesn't have trouble at those areas, then the next
resistance is at the 889.75-890.25 area on the SP futures
and the 1195.00-1196.00 area on the Nasdaq futures. A turn
from those areas is likely, so be alert for a reversal if
the market gets there and the move fizzles out. If those are
not a problem, then the 897.00-898.00 area on the SP futures
and the 1201.50-1203.00 area on the Nasdaq futures would be
next. If those aren't rejected, then we could go for the
904.50 area on the SP futures. If the market has a big
follow-through day on the upside, then look for good
resistance up at the 917.00-918.00 area on the SP futures.
The initial support is at the 856.00-855.75 area on the SP
futures and the 1153.25-1152.50 area on the Nasdaq futures.
If those areas do not hold, then it looks like the 849.00-
848.00 area on the SP futures and the 1148.00-1146.50 area
on the Nasdaq futures could be pivotal. If the market
doesn't quickly reverse from those areas, then the next key
support is down at the 839.00-838.50 area on the SP futures
and the 1125.00-1123.50 area on the Nasdaq futures. The
trends turned up when that area was broken and held on
Friday. If those areas are broken, then the next support is
around the 835.00 area on the SP futures and the 1117.50
area on the Nasdaq futures, and if those are broken then
there should be strong support at the 825.50-825.00 area on
the SP and the 1106.75-1105.50 area on the Nasdaq futures.
If those are broken, then the Friday lows at the 817.00
level on the SP futures and the 1095.00 level on the Nasdaq
futures need to hold, otherwise the market is in for a bad
day.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
880.50-882.00
889.75-890.25
897.00-898.00
904.50
917.00-918.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
856.00-855.75
849.00-848.00
839.00-838.50
835.00
825.50-825.00
817.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1185.00-1186.25
1195.00-1196.00
1201.50-1203.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1153.25-1152.50
1148.00-1146.50
1125.00-1123.50
1117.50
1106.75-1105.50
1095.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8685-8691
8749-8754
8820-8828
December 2008 Dow futures support
symbols: emini = ymz8
8455-8452
8397-8390
8308-8300
8270
8171-8166
8116
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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