TradeStalker's
Support and Resistance Update
11 / 4 / 2010
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 11/4/2010
The ES gapped up 10.50 points on Thursday and turned down
from 1210.50 in the first 20 minutes, but the opening range
held as support and from 1206.75, the market took off to the
upside. The ES reached 1215.00 before noon and then churned
between 1215 and the 1210.50 early high going into the last
hour. The market extended the upside and carried the
strength into the close.
All of the averages closed at 52 week highs and are still in
strong uptrends. There is a big gap below the market that
should get filled probably sooner than later.
The trend up move should have trouble holding up on Friday
no matter what the Employment report shows. For the first
time in over a month the short term internal gauges are at
overbought extremes. The 3 day thrust is at +.70, the RBI
Oscillator is barely in sell territory, and we had 1 Vix
sell signal.
Back to back trend days are rare, and after a 23 point melt-
up by the SP500 on Thursday a pullback would be healthy. If
the ES gets back to the 1215.75-1215.25 zone it will need to
turn right back up to avoid breaking the uptrends. If that
area is not held, then it looks like a drop to the 1211.00-
1210.50 area will need to be defended, otherwise odds of a
short term top being in place will go up. If that area is
defended, then a snap-back rally would need to clear the
1215 area again, otherwise a transition to the downside
could be in the works.
If the market opens higher on Friday, then expect that gap
to fill (or a drop towards the 1215 area) before buyers step
to the plate. If that doesn't occur around that zone, then
the market will be in a two-sided trading day, at best.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1219.50-1220.25
1222.25-1222.75
1226.50-1228.00
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1215.75-1215.25
1213.50-1213.00
1211.00-1210.50
1206.50-1206.00
1199.50-1198.50
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2186.00-2187.00
2191.00-2191.50
2198.50-2199.50
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2179.75-2179.00
2176.25-2175.75
2172.50-2171.50
2163.25-2161.75
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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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