TradeStalker's
Support and Resistance Update
10 / 31 / 2010
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 10/31/2010
The lower open was reversed from 1177.00 support then the
bounce to 1180.75 stalled and made a 1-2-3 top. That set up
a drop back to the updated 1177-1176 support zone (1176.50)
which reversed and the rally reached the 1182.50 initial
resistance. A quick 6.75 point drop to 1175.75 (1 tick under
updated support) followed, and that was bought again.
Another run-up to 1182.50 was quickly reversed, and a 4
point drop to 1178.50 followed. The same happened in the
last hour as the market had a back and forth type of day.
While prices have gone sideways on a daily basis, beneath
the surface the internals are weakening. The intermediate
term gauges rolled over early last week, and the short term
gauges have been neutral for a long time now. That is
abnormal, as the market normally doesn't stay in a
persistent slow grind up or down this long.
The initial resistance zone on the ES at 1182.00-1182.50 was
a lid on bounces on Friday once again. The 1178.75-1178.50
zone was good support late in the day. The market has a
chance to put together one last decent rally before the
election on Tuesday and the Fed decision on interest rate
policy on Wednesday if early weakness is bought on Monday
and they hold and reverse from above the initial support
areas. If that area is defended, and then the 1182.00-
1182.50 area is pushed through, a hold over 1181.00 (at
lowest) then could cause a short covering run up towards the
1188 area. That would set up a shorting opportunity if the
move then stalls/ rejects that area. However, if the ES
cannot clear/ hold that 1182.50 level and then 1181 is
broken, a high could be in place for a decent sized
pullback. A drop back to the 1173.50-1173.00 area would need
to get turned around quickly or the market will be a
transition back down and possibly confirm a topping pattern.
If 1178.50 breaks then shorting bounces is going to be the
easier side to trade from.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1182.00-1182.50 *key
1186.00-1186.50 *strong
1188.00-1188.50 *major
1192.50-1193.00
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1178.75-1178.50
1173.50-1173.00 *key
1171.50-1171.25
1167.50-1167.00 *major
1163.00-1162.50
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2129.50-2130.50 *key
2134.50-2135.50 *strong
2139.75-2140.50 *major
2146.25-2147.50
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2119.00-2118.00
2110.25-2109.25 *key
2103.50-2102.25
2097.50-2096.50 *major
2088.50-2087.50
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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