TradeStalker's
Support and Resistance Update
11 / 15 / 2010
(Published Since 1996)
...............................................
Dateline: 5:59 pm eastern time, 11/15/2010
The gap up open was a short after it reversed from just over
the 1202.50 resistance and dropped to 1197.25 in the first
hour. A rally to 1205.50 had a pullback, then a test of that
1205.50 level stalled out. After the ES dropped to 1199.50,
I sent an instant Message saying:
(Nov 15-14:29) mike: A bounce to 02.50-03.00 that
stalls is a good short/ re short.
The ES bounced to 1202.75 and stalled before reversing and
dropping 8 points to 1194.75 - just 1 tick over initial
support - then bounced a bit into the close.
We get the PPI before the open on Tuesday. The market was
oversold and it did start off the day with a decent rally,
however the gains could not be held. A test of last week's
lows, which are just below the Monday lows, should be seen
early on Tuesday. If they break, then a reversal back up
from around the 1188.50-1187.50 area on the ES is a must to
avoid trouble. If the market cannot get turned around from
there, which is close to the breakout area that took the ES
over 1200, then there is bigger trouble down the road.
If there is an early bounce, there is good resistance above
to sell into for a drop to test the 1192.25-1191.50 or
lower. If the 1198.50-1199.00 area is not sold on a bounce,
then the 1202.00-1202.75 area should be. There should be
plenty of longs looking to get out on a bounce, and the
volatility sure has picked up, so a stall at a resistance
zone in the early going would likely be gift on the short
side.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1198.50-1199.00
1202.00-1202.75
1205.75
1207.75-1208.50
1212.50-1213.50
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1194.50
1192.25-1191.50
1188.50-1187.50
1182.50-1181.50
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2132.75-2133.25
2139.50-2140.50
2144.75
2150.50-2151.50
2167.75-2168.75
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2126.00
2120.00-2119.25
2111.00-2110.25
2101.50-2100.50
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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