TradeStalker's
Support and Resistance Update
11 / 1 / 2010
(Published Since 1996)
...............................................
Dateline: 6:46 pm eastern time, 11/1/2010
A gap up open kept going for 30 minutes and then reversed at
the 1192.50-1193.00 resistance on the ES. A drop to 1183
followed, and then a bounce to the 1186.50 updated
resistance. The 1182.50 then 1178 areas were taken out on
the way to 1173.75 which was just over the key 1173.50-
1173.00 support. The 1178.50 level was rejected, but a dip
didn't stick and the 1178.50 level broke then held it on a
test as the market rallied back into the close.
There was good volatility at least on Monday. The range
expansion took the ES from the top of the recent range to
the bottom end, and again the market averted a breakdown
once again by snapping back with a better than expected
rally into the close. There is a potential for a double top
at the 1193 area on the ES. However, the market is still
range bound so it could be revisited. Odds don't seem to
favor that happening, but the key 1173 area held on a test
on Monday. Now the ES needs to stay over that 1178.50-
1178.00 area on a dip, or the action could finally change.
Odds are good that we get an inside day on Tuesday, as the
market awaits the Fed and QE2 on Wednesday. It looks like
there is better odds for shorting the bounces when upside
momentum stalls out, especially at/ near resistance zones.
How the market acts on a move up to the 1185.25-1186.00 area
should be telling if there is early strength. If that is
rejected, decent pullback can occur. On the downside, as
long as a pullback can hold that 1178.50-1178.00 area on the
ES, then the market avoids trouble. If that is not held, and
the 1173 area is broken, then a reversal needs to come from
the 1167 area at the lowest, otherwise a pre Fed day
breakdown could then be in the cards.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1185.25-1186.00
1188.50-1189.00
1192.75-1194.00
1197.75-1198.75
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1178.50-1178.00
1173.75-1173.00
1167.75-1167.25
1164.00-1163.25
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2132.00-2132.50
2137.50-2138.50
2145.75-2146.50
2150.50-2152.00
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2123.50-2122.75
2115.00-2114.00
2104.00-2102.25
2097.50-2096.50
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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