TradeStalker's
Support and Resistance Update
10 / 27 / 2010
(Published Since 1996)
...............................................
Dateline: 6:53 pm eastern time, 10/26/2010
A 9 point down open on the ES was reversed from the 1173.50-
1172.50 support and bounced to the 1179.00 level 30 minutes
into trading. The reversal there set up a short and a trend
down move to 1168.25 followed. A bounce reversed at 1173.50
resistance, then dropped again to just 1 tick over the
1167.50-1167.00 support area. A reversal occurred and the
break/hold of the 1173 area turned the trends and a rally to
1180.50 key area was reached just before the close.
The market has acted like it's ready to get hit with a good
sized down day, but it continues to find buyers on the deep
drops and bounce back. The ES rallied to the 1180.50 level
at the close and stopped while the NQ came within 2 ticks of
its 2125.50 high for the move. Those need to be cleared and
held on Thursday morning to keep the strong trend up move in
gear. Below the market, the 1173.50-1173.00 area was a
transition area on Wednesday and that is as far as a
pullback should go, otherwise the trends will roll over and
make the bounces turn into shorting opportunities.
We get Initial Claims before the open on Thursday. If the
market opens higher, expect a reversal to occur no later
than 40 minutes into the day. If that plays out, then watch
for a dip to be 4 points or less on the ES before buying
comes back in if the market is going to stay strong. If
there is a deeper drop, and/or the 1176 area if broken, then
that 1173.50-1172.50 area should be tested and either
reverse or roll over to the downside.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1180.50
1183.50-1184.25
1188.00-1188.50
1192.50-1193.00
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1173.50-1173.00
1171.50
1167.50-1167.00
1163.00-1162.50
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2125.50
2129.25-2130.00
2135.75-2136.50
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2114.50-2113.50
2110.75
2103.50-2102.25
2097.50-2096.50
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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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
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is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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