TradeStalker's
R.B.I. Trader's Update
12 / 11 / 2008
(Published Since 1996)
...............................................
Dateline: 6:46 pm eastern time, 12/11/2008
The market opened lower on Thursday and reversed from the
884.50-884.00 zone on the SP futures and put together a
decent bounce. However, as they have been doing the last 2
days, the bounce didn't stick as the SP futures had trouble
around the 902.50-903.50 area. After rejecting that zone,
the market popped just over it and reversed and the high was
in place. The updated resistance at 898 was tested and
rejected, and the market sold off to the key 884.50-884.00
zone. There was barely a bounce off of that area and after
the bounce fizzled at 887.50, the market rolled over hard.
The SP futures fell to 867.50 before a bounce into the
close.
The bear is growling again, as the back to back inside days
on Tuesday and Wednesday along with complacent VIX lead to a
sizable selloff on Thursday. This downside should continue
for another day or so, unless the SP futures can get back
over the 893.50-894.00 area and not reverse on Friday. The
VIX reversal is a negative, as is the break of the wedge
patterns mentioned last night. A drop to the 857.00-856.00
area on the SP futures would be the next key support. Even
if the market can rebound off of that zone on Friday
morning, the first decent bounce should set up a shorting
opportunity as soon as the upside fizzles, especially if
that fizzle occurs at a resistance area.
The initial resistance is at the 876.50-877.00 area on the
SP futures and the 1189.50-1190.50 area on the Nasdaq
futures. If the market gets there and the move stalls out,
it's a great shorting opportunity. If those are broken, then
there should be good resistance near the 887.50-888.00 area
on the SP futures and the 1205.50-1206.50 area on the Nasdaq
futures. If those are somehow exceeded, then a move towards
the 893.50-894.00 area on the SP futures and the 1213.00-
1214.00 area on the Nasdaq futures should offer a very good
shorting opportunity if the market is still vulnerable. If
those are exceeded and not quickly reversed, then there is
strong resistance at the 903.50-904.50 area on the SP
futures and the 1221.25-1222.50 area on the Nasdaq futures.
If we get a strong move, it must not fail again near the
907.25-908.25 area on the SP futures and the 1230.50-1231.50
area on the Nasdaq futures or we will repeat the selloff.
The initial support is at the 867.50 level on the SP futures
and the 1175.00 level on the Nasdaq futures. If those lows
are broken, then those areas will become good resistance on
a bounce. The next support should be key, at the 857.00-
856.00 area on the SP futures and the 1166.50-1165.25 area
on the Nasdaq futures. The market must reverse from those
areas, otherwise the market could be caving in again. If
there isn't a good reversal from those areas, then the
844.50-842.00 area on the SP futures and the 1155.50-1152.00
area on the Nasdaq futures could be in the cards. If those
do not hold, then the market is in for another bad day.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
876.50-877.00
887.50-888.00
893.50-894.00
903.50-904.50
907.25-908.25
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
867.50
857.00-856.00
844.50-842.00
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1189.50-1190.50
1205.50-1206.50
1213.00-1214.00
1221.25-1222.50
1230.50-1231.50
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1175.00
1166.50-1165.25
1155.50-1152.00
March 2009 Dow futures resistance
symbols: emini = ymh9
8576-8580
8698-8703
8730-8733
8790-8795
8850-8857
March 2009 Dow futures support
symbols: emini = ymh9
8491
8444-8437
8322-8312
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REMINDER:
Real Time subscribers can view these updates on
the web at this site:
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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