TradeStalker's
Support and Resistance Update
11 / 14 / 2010
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 11/14/2010
The market stalled out at the new high ground on Monday and
Tuesday, and with the ES unable to stay over the 1221 area
for very long, the risk/ reward favored the bears. A big
drop found bottom at the 1202 area on Wednesday and
Thursday, but bounces refused to stick and the internal
gauges rolled over again.
Friday's lower open held just over 1202.00-1201.75 support
zone on the ES and bounced 6.25 points to the 1208.00-
1208.50 pivotal zone, and turned right back down and sold
off 11 points. The drop met and broke the 1199 target, then
bounced to updated resistance at 1202 to re-short. A 10 point
drop to and just through the 1194-1192 zone followed. The
1206 area was new resistance, and a bounce reversed from
1196.25 and gave a 4 point drop to 1192.25. The market
firmed up a bit and the ES ran up to 1199.00, but that was
sold and the futures dropped into the close.
The top that occurred on Friday, November 5th and then
retested on Tuesday, November 9th was just under the 61.8%
retracement (from October 11th, 2007 high at 1576.09 to low
at 666.79 on March 6th, 2009). The sentiment was at overly
bullish extremes, and the internal gauges rolled over before
prices did. The drop started on Tuesday, and by Friday
afternoon met the 1193 area on the ES, which would be the
maximum retracement if the market is still bullish. That
area was broken, and now the 1183.50-1182.50 area where the
market broke out could be in the cards. If that area is not
defended, then more than a small correction is underway.
The market is short term oversold on a few indicators.
However, for now, the market will be under pressure on
Monday unless both the 1198.00-1199.00 area on the ES and
2141.50-2142.00 area on the NQ are exceeded. If that occurs,
then we could go for a test of the 1202.00-1202.50 area, but
a failure there would be likely. On the downside, the ES
ended the day in another wedge pattern and a break of the
Friday low would open the door for a test of the 1183.50-
1182.50 zone. If the market gets down there, we should get a
tradable bounce if the move stalls out or reverses back up.
If that area is not defended, or quickly reversed if broken,
then something is going on that has a pull on the market and
falling back towards the 1167 area could occur if a panic
move occurs.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1198.00-1199.00
1202.00-1202.50
1207.75-1208.50
1212.50-1213.50
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1194.50
1192.25-1191.50
1188.50-1187.50
1183.50-1182.50
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2141.50-2142.00
2149.50-2150.50
2158.50-2159.00
2167.75-2168.75
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2133.00
2127.00-2126.50
2120.00-2119.25
2108.00-2106.50
---------------------------
REMINDER:
Real Time subscribers can view these updates, and also get
real time instant messages, on the web at this site:
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.
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