TradeStalker's
Support and Resistance Update
11 / 7 / 2010
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 11/7/2010
After a flat open on Friday, the rally continued as the ES
ran up to 1224.50 by 11 am. A pullback to 1217.25 followed,
and then the market bounced back. The ES reached 1221.75,
but that move didn't stick either and they dropped back to
the 1217.25 level again. A feeble bounce then failed and the
market pulled back, but with an hour left the market refused
to fall and rallied back towards the highs by the close.
The overbought market spun its wheels on Friday due to the
short term overbought condition, swinging back and forth in
narrow ranges. For now, it doesn't appear that the market
can continue to go straight up from here. The SP500 cash
reached 1227.08 on Friday. The Fib 61.8% retracement from
the October 2007 all time high to the March 2009 low is at
1228.74. It would mean more if there was a cluster of
numbers there, but it will be watched for sure.
The market is still a bit overbought, but has just one more
day to go before that is nullified. So, the market will
likely have trouble holding gains up here as a decent
pullback is possible. It will depend upon whether or not the
initial support areas are defended on Monday. If the 1217
area is held, then there is no damage done, and the market
can march higher. If that is the case, an explosive rally
isn't likely, but a choppy grind higher is possible.
However, if the 1217 area is broken along with the 2177 area
on the NQ (and 11395 on Dow cash) then some damage will be
done and then bounces should be sold into unless the ES is
able to get back over 1120.50 and not quickly reverse.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1223.50-1224.50
1227.75-1228.25
1232.50-1233.00
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1217.75-1217.25
1215.75-1215.25
1211.00-1210.50
1206.50-1206.00
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2187.75-2188.75
2197.50-2198.50
2204.25-2205.25
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2177.00-2176.50
2172.50-2171.50
2165.50-2163.75
2154.75-2153.75
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Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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