TradeStalker's
Support and Resistance Update
11 / 9 / 2010
(Published Since 1996)
...............................................
Dateline: 6:06 pm eastern time, 11/9/2010
The ES had a gap up open at 1223.50 on Tuesday and that was
reversed and a drop to test the 1218.75-1218.25 support
brought in buying. A rally back from 1219.00 took the ES to
1224.75 (1 tick over the 1224.50 Friday high) and it was
quickly reversed. That was the start of a trend down move,
and after the initial drop we had 3 counter trend bounces -
all stopping and reversing at updated resistance - on the
way to the last support at the 1206.50-1206.00 zone. Short
covering started with 15 minutes left to lift the market a
bit into the close.
Tuesday was a reversal day, and most likely not a one day
drop. On Wednesday we should have a 2 sided trading day with
a downside bias, unless there is a reason for a panic type
of move. The Vix gave 2 sell signal as the sentiment shifted
from overly bullish. Also, the futures had an outside day to
the downside. The 1206 area was able to hold, so the market
averted a sharp drop for the day. If that area is not
defended on Wednesday, then we could be revisiting the
1193.50-1193.00 break out area from the last move up.
We get the Initial Claims before the open on Wednesday, so
if there is early strength it should set up a good shorting
opportunity if the move is reversed from the 1213.50-1214.00
area on the ES, or better yet the 1217 area. If the market
opens lower, then a counter trend bounce should occur within
the first 20-40 minutes of trading. If that plays out, the
first decent bounce will be likely sold so don't overstay
anything on the long side.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1213.50-1214.00
1217.00-1217.50
1219.50
1224.00-1225.00
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1206.50-1206.00
1199.50-1199.00
1193.50-1192.50
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2178.00-2179.00
2182.50-2184.00
2188.75
2197.00-2198.00
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2165.25-2164.25
2155.25-2153.75
2141.20-2139.50
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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