TradeStalker's
Support and Resistance Update
11 / 28 / 2010
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 11/28/2010
Last week was a volatile week and big moves on the open
occurred each day. The ES had a 6.25 down open on Monday, a
15.25 down open on Tuesday, a 8.50 gap up open on Wednesday,
and a 9.75 down open on Friday (from Wednesday's close). The
weakness was bought and the ES rallied to 1193.25 before
stalling out. A bounce to a lower high at 1192.50 reversed,
and the market couldn't recover at all and let loose in the
last hour to just miss our 1182.50 target at the close.
The SP500 cash has been stuck between 1200 on top and 1173
on bottom for 8 straight days now. On Friday the SP500 cash
closed about in the middle of the range, however the futures
settled well below fair value and in sell program territory.
A trip to the bottom of the range, or lower, looks to be in
the cards. The internal gauges are in bad shape, but
sentiment is now showing some fear, so how the market
handles a test of the 1172-1171 area on the ES early in the
week should be very key near term.
The trends are down again, and selling bounces should offer
the better set-ups. On Monday the market will need to get
over the 1189.50-1190.25 zone on the ES and the 2156.00-
2156.75 zone on the NQ, and not reverse, to avoid trouble.
If that happens, then the market buys more time inside of
the current trading range, and we could still test the
1197.50 area one more time. However, the initial resistance
will not be cleared, or held if poked over, if the market is
still headed to break the 1182 area on the ES.
If that 1182.50-1182.00 area is broken, and held after
breaking, then a test of the 1177.50-1176.50 zone will need
to be reversed quickly or else it's right down towards the
1172-1171 area on the ES. That is the bottom of the current
range, and just under the 50 day moving average on the SP500
cash, so it should be key for the market other than being
just the bottom of an 8 day trading range. A reversal back
up from that area could give a nice run to the upside, but
if that doesn't occur then a hold under that area could
start a panic type of move lower.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1186.25-1186.75
1189.50-1190.25
1192.75-1193.25
1197.50-1198.00
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1182.50-1182.00
1177.50-1176.50
1172.00-1171.00
1167.75-1167.00
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2149.25-2150.00
2156.00-2156.75
2160.50-2161.25
2165.50-2166.50
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2143.75-2142.75
2137.75-2136.75
2128.25-2126.75
2120.25-2118.50
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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This publication's primary focus is trading the index
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