TradeStalker's
Support and Resistance Update
10 / 24 / 2010
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 10/24/2010
The ES popped up on the open on Friday and poked just 1 tick
over the 1180.00-1180.50 zone, and that set up a shorting
opportunity, especially when 1180 was reversed again. A 5+
point drop to 1175.50 happened in the first 40 minutes of
trading, then sideways chop followed. The 1179.00-1179.50
was scalp short resistance and 1176 area was support all
afternoon for those who hung around. That 1179.00-1179.50
updated resistance was rejected 6 times while dips held the
updated 1176 area. At the 4 PM close for stocks, the ES
finally took out that 1179.00-1179.50 zone and ran them up
to the high before settlement.
Most of the intermediate term indicators have turned down,
so the internals need to improve quickly or a good sized
drop could be coming. The sentiment is getting overly
bullish on the short term. The short term gauges relieved
the oversold status they were in on Tuesday.
The market had a narrow range day on Friday, and after
bumping its head against the 1179.00-1179.50 area all day,
the ES took that out and rallied into the close. That area
needs to hold on a dip on Monday to keep the uptrends
intact. If that bounce off of 1179.50-1179.00 occurs and the
market bounces back towards the 1186 area from last week,
expect a decent pullback to begin. If the 1179.50-1179.00
area is not held, then a high can be in place short term.
That's the case if the 1176 area from Friday is not
defended. A break of that area would make a bounce back
towards 1178-1179 area a shorting opportunity.
NOTE: I'm having a trading camp this week. I'll do my best
to update during the day, but most will be via instant message
until Thursday.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1181.50-1182.00
1185.50-1186.50
1189.50-1190.50
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1179.50-1179.00
1176.75-1176.25
1172.50-1172.00
1167.50-1167.00
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2104.75-2106.50
2111.50-2112.50
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2101.50-2101.00
2098.00-2097.50
2087.50-2086.75
2078.50-2077.75
December 2010 Dow futures resistance
symbols: emini = ymz0
11108-11111
11138-11145
December 2010 Dow futures support
symbols: emini = ymz0
11083-11079
11062-11060 (11110 Dow Cash)
11053-11050
11014-11010
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http://www.tradestalker.com/RBIchat.htm
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 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
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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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