TradeStalker's
Support and Resistance Update
10 / 21 / 2010
(Published Since 1996)
...............................................
Dateline: 6:56 pm eastern time, 10/21/2010
The market opened higher on Thursday and rallied up to the
1185.75-1186.50 resistance zone and then stalled out. After
topping at 1186.25 the ES pulled back 10 points to 1176.25
before there was a bounce. That bounce made it to updated
resistance at 1179.50-1180.25 which allowed for a good
second entry and the market went trend down into 2:00 PM.
The ES then reached 1167.25, which happen to be a .618
retracement from the 1155.50 low from Tuesday to the 1186.25
high for the day. Buyers stepped to the plate and the market
rallied back 1177.50 on the ES and then traded sideways into
the close.
There is nothing on the economic docket at all on Friday, so
stocks are on their own path. The market ended the day with
a bounce, but forming a rising wedge pattern in the process.
It looks like the 1174 area on the ES needs to hold to avoid
a break lower, and that would make a bounce that follows a
good shorting opportunity.
The market has been turned away enough already at higher
levels, especially on crossing down through the 1180 level
on the ES. Although there was a bullish tone early on
Thursday by breaking/ holding the 1179 level on the ES, the
bid dried up at the 1185.50-1186.25 area and the sharp drops
that follow are normally topping action. We still have a
potential 1-2-3 top forming on the daily chart, and that
could be confirmed if the Friday close is under the 1160
area on the SP500 Cash.
So, don't expect the upside to stick on further strength. A
test of the Thursday lows was at a logical support area, so
if 1174 breaks and that 1167 area is tested we could get
another decent bounce. However, a break of that would mean
bad news for Friday as the lows for the week could be in the
cards.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1177.00-1177.50
1180.00-1180.50
1185.50-1186.50
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1174.00
1172.50-1172.00
1167.50-1167.00
1159.25-1158.50
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2088.00-2088.75
2091.50-2092.50
2103.50-2104.50
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2082.00
2077.75-2077.00
2066.75-2065.75
2060.50-2059.50
December 2010 Dow futures resistance
symbols: emini = ymz0
11097-11111
11114-11117
11160-11165
December 2010 Dow futures support
symbols: emini = ymz0
11071
11058-11053
11017-11013
10937-10933
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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permission.
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PO Box 9783, Ft Wayne, IN, 46899
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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