TradeStalker's
Support and Resistance Update
11 / 16 / 2010
(Published Since 1996)
...............................................
Dateline: 5:59 pm eastern time, 11/16/2010
The ES gapped down 7.75 points and reversed from 1184.75
just 5 minutes into trading, then popped up to 1190.00. The
first bounce was sold and the ES went trend down to the 1172
area. A double bottom lead to a bounce to 1179.25, but it
failed and a drop to 1171.00 happened with 1 hour left in
stock trading. Buying/ short covering took the market higher
into the close.
The market is deeply oversold while at a pretty key area on
the SP500. Some of the internal readings intraday on Tuesday
were at capitulation levels. The only problem is that
bounces haven't had much gusto since topping out last week.
We could get a bounce of 12-15 points on the ES but the way
the market acts, it would be sold into. We are due a decent
bounce soon, but if we get one it will then set up another
shorting opportunity.
On Wednesday look for 2-sided action, with pretty key
support near the Tuesday lows that should be reversed. On a
bounce, a move over the 1179.25-1180.50 area on the ES and
also the 2100.75-2101.50 area on the NQ would be needed to
break the downside momentum. If the ES gets through that
area, beware of a potential reversal if the 1183.50-1184.50
zone is reached and the move stalls out.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1179.25-1180.50
1183.50-1184.50
1189.50-1190.50
1194.75-1195.75
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1171.00-1170.50
1167.75-1167.00
1162.50-1162.00
1158.25-1157.50
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2100.75-2101.50
2109.50-2110.25
2118.75-2120.25
2126.50-2127.25
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2083.50-2082.50
2077.50-2076.50
2068.25-2067.50
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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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