TradeStalker's
R.B.I. Trader's Update
12 / 8 / 2008
(Published Since 1996)
...............................................
Dateline: 7:43 pm eastern time, 12/8/2008
The market gapped up on Monday and above the recent trading
range. The ES continued higher from 895.50 and ran up to
907.50 before pulling back. The pullback held at 895.75 and
the market turned back up. After getting to 911.75, the SP
futures made a little 1-2-3 top and pulled back to 896.25
and that held for a third time. The SP futures bounced back
to the 904.75 level, as old support turned into resistance,
and then the SP futures broke the 895.50 level, but then
reversed from the 60 ema on the 5 minute chart and turned
back up. The SP futures took out that 905 resistance and
rallied up to the 917-918 area. The SP futures popped over
that zone and reached 919.75, but quickly reversed back down
and dropped to 901.50 (also the 60 ema on the 5 minute
chart) by the close.
The SP futures now have an unfilled gap above and below
Monday's prices. The good news is that the market broke out
to the upside from its range from last week. The bad news is
that the SP futures rejected the 918 area, which is a
logical spot for the upside to reverse.
The market reversed late on Monday and is now getting
overbought on some gauges. The strength will likely be sold
on Tuesday, as the market backs off for a better buying
opportunity at lower prices. So, if there is early strength,
it should set up a good shorting opportunity. If that plays
out and the Monday afternoon lows are broken, then the door
would be open for the market to go down to fill the Monday
gap. However, if the market goes down to the 880.50-879.50
area on the SP futures and can't quickly reverse, then a
short term top will be in place and a deeper correction is
likely in the works.
The initial resistance is at the 912.50-913.00 area on the
SP futures and the 1229.50-1230.25 area on the Nasdaq
futures. If those areas are reached and the move fizzles, it
sets up a good shorting opportunity. If those areas are
easily exceeded, then the key hurdles would be at the
918.50-919.25 area on the SP futures and the 1236.75-1237.75
area on the Nasdaq futures. That is key resistance on
Tuesday and if it's not rejected then we should go for the
925.50-926.00 area on the SP futures and the 1244.50-1245.50
area on the Nasdaq futures before a reversal occurs.
The initial support is at the 898.00 area on the SP futures
and the 1204.00 area on the Nasdaq futures. If the market
can't turn up from those levels, then the 893.00-892.50 area
on the SP futures and the 1200.25-1198.50 area on the Nasdaq
futures will need to hold. If they are not quickly reversed,
then it opens the door for a drop towards the 880.50-879.50
area on the SP futures and the 1184.00-1182.50 area on the
Nasdaq futures. If those are tested and the market cannot
get turned around, then another test of the old 872.75-
872.00 area on the SP futures and the 1174.00-1172.50 area
on the Nasdaq futures is likely before an attempt to get
turned around.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
912.50-913.00
918.50-919.25
925.50-926.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
898.00
893.00-892.50
880.50-879.50
872.75-872.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1229.50-1230.25
1236.75-1237.75
1244.50-1245.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1204.00
1200.25-1198.50
1184.00-1182.50
1174.00-1172.50
December 2008 Dow futures resistance
symbols: emini = ymz8
8961-8966
9020-9025
9068-9078
December 2008 Dow futures support
symbols: emini = ymz8
8812
8807-8802
8684-8679
8610-8602
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.
*************************************************
No comments:
Post a Comment