TradeStalker's
Support and Resistance Update
10 / 25 / 2010
(Published Since 1996)
...............................................
Dateline: 5:23 pm eastern time, 10/25/2010
The ES gapped up 6 points on Monday, as the 1185.50-1186.50
resistance turned support on the gap up and the ES reached
the 1193.00 overnight high before pulling back. I stated
"That might be a high for the morning if 1191.50 is not
exceeded" and the bounce stopped right at 1191.50 before
rolling over. A trend down move to 1182.50 followed, and
then a bounce to 1186.75 was reversed and another pullback
followed. The 1183 area was holding on drops, but after a
bounce to 1188.25 was reversed, the market dropped to new
lows for the day as the ES filled the 1181.50 gap on the
daily chart in the last 5 minutes of stock trading.
On Tuesday we have the Consumer Confidence number at 10am,
and it could cause a reversal like on Monday if the market
goes higher. The daily chart is a reversal pattern, and
bounces obviously did not stick on Monday. The market isn't
far from breaking down either. The Friday afternoon low
areas need to be defended, otherwise the downside can gather
some steam.
Look for a shorting opportunity if there is early strength
that reaches and stalls or rejects the initial resistance
areas. If a pullback is not reversed from the 1176.75-
1176.25 area on the ES and the 2097.50-2096.50 area on the
NQ, along with 11110 on the Dow cash, then the market is
breaking down short term. A bounce from those areas however
saves the market from rolling over and could start a decent
bounce.
December 2010 SP futures resistance
symbols: emini = esz0 / big contract =spz0
1185.50-1186.00 early short
1188.00-1188.50 strong
1192.50-1193.00 major
1198.50-1199.00
December 2010 SP futures support
symbols: emini = esz0 / big contract =spz0
1181.50-1181.00
1179.50-1179.00 must hold
1176.75-1176.25 key
1172.50-1172.00
1167.50-1167.00
December 2010 Nasdaq futures resistance
symbols: emini = nqz0 / big contract = ndz0
2116.50-2117.25
2121.00-2121.50
2128.75-2130.00
December 2010 Nasdaq futures support
symbols: emini = nqz0 / big contract = ndz0
2106.25-2015.50
2101.50-2101.00
2097.50-2096.50
2087.50-2086.75
2078.50-2077.75
December 2010 Dow futures resistance
symbols: emini = ymz0
11145-11151
11170-11174
11120-11125
December 2010 Dow futures support
symbols: emini = ymz0
11104-11097
11083-11079
11062-11060 11110 Dow Cash
11053-11050
11014-11010
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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The foregoing has been prepared solely for informational
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