TradeStalker's
R.B.I. Trader's Update
12 / 9 / 2008
(Published Since 1996)
...............................................
Dateline: 8:05 pm eastern time, 12/9/2008
The market opened lower on Tuesday and the SP futures turned
up from 894.00 and moved up to 916.25 by late morning. A
drop held at 901.50, and the SP futures bounced back towards
our 911-912 resistance. The pop fizzled after reaching
910.25, and the reversal broke the 901.50 level on the way
to a new low at 884.50. The SP futures bounced back to
901.25, which coincided with the 60ema on the 5 minute
chart, and the market fell back to test the lows. A 10 point
bounce to 894.00 fizzled and the SP futures went to 885.00
one more time and then the market churned into the close.
The overbought indicators led to a hefty pullback thus far.
The downside was losing momentum going into the close, so
the early action should be key for the day on Wednesday. If
the 885.00-884.50 area is cut through, then the 880.50-
879.50 area on the SP futures should be a magnet. If the
market gets down there in the early going on Wednesday, and
the market reverses back up from that area, then we could
get a decent rally attempt. Just beware that at the higher
levels (in the high 900-teens) the bounces are not sticking.
In addition, the VIX was up just a fraction while the market
was hammered pretty hard. It gave 1 sell signal for
Wednesday, and sure didn't show much fear for such a sizable
down day. The market acts like it's comfortable as long as
that 885.00-884.50 area holds. However, if we get a decent
bounce it will likely set up a good shorting opportunity,
especially if the bounce fizzles and reverses from near the
909.50-910.25 area again on Wednesday. It looks like the
market needs to get over that area to get a good
On Wednesday look for an early bounce that fizzles to set up
a shorting opportunity. If that plays out, then the Tuesday
lows will need to hold, otherwise the gap from Monday will
likely be filled. If that occurs and the market can reverse,
then buying pullbacks should work out until the move runs
out of steam and fizzles out.
The initial resistance in the first 15 minutes at the 895.50
area on the SP futures and the 1223.00-1224.00 area on the
Nasdaq futures. If the market pops up there and
stalls/reverses, then it sets up a good shorting
opportunity. If the market doesn't reverse from there, then
the next hurdles are at the 899.50-900.25 area on the SP
futures and the 1231.00-1232.00 area on the Nasdaq futures.
If those are poked through, then the pivotal area should be
at the 902.50-903.50 area on the SP futures and the 1236.50-
1237.50 area on the Nasdaq futures. If those are not a
problem, then a move towards the 909.50-910.25 area on the
SP futures and the 1242.50-1243.50 area on the Nasdaq
futures would be key. If those are not rejected, then the
big hurdles are up at the 918.50-919.25 area on the SP
futures and the 1252.50-1254.00 area on the Nasdaq futures.
If the market gets a good rally going, we could see the
925.50-926.00 area on the SP futures and the 1264.50-1265.50
on the Nasdaq futures.
The initial support is at the 885.00-884.50 area on the SP
futures and the 1202.25-1200.50 area on the Nasdaq futures.
If those are broken, then a drop towards the 880.50-879.50
area on the SP futures and the 1194.00-1192.50 area on the
Nasdaq futures could be in the cards. Look to get long on a
reversal if that occurs. If those are not held, then the
872.75-872.00 area on the SP futures and the 1184.00-1182.50
area on the Nasdaq futures would be next. If the market
cannot hold those areas, then the 865.50-864.50 area on the
SP futures and the 1174.00-1172.50 area on the Nasdaq
futures could be revisited. If the market is hit hard again,
then the major support short term is down at the 857.00-
856.00 area on the SP futures and the 1157.00-1155.00 area
on the Nasdaq futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
895.50
899.50-900.25
902.50-903.50
909.50-910.25
918.50-919.25
925.50-926.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
885.00-884.50
880.50-879.50
872.75-872.00
865.50-864.50
857.00-856.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1223.00-1224.00
1231.00-1232.00
1236.50-1237.50
1242.50-1243.50
1152.50-1254.00
1264.50-1265.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1202.25-1200.50
1194.00-1192.50
1184.00-1182.50
1174.00-1172.50
1157.00-1155.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8758-8764
8790-8795
8838-8842
8864-8872
9020-9025
9068-9078
December 2008 Dow futures support
symbols: emini = ymz8
8649-8644
8610-8602
8558-8552
8484-8477
8408-8402
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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
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Disclaimer
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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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