TradeStalker's
Support and Resistance Update
1 / 25 / 2011
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 1/25/2011
The lower open reversed from 1282.00 and spiked up to
1288.50 again before reversing and dropping to the 1278.50-
1278.00 support zone before noon. A 1-2-3 bottom at that
area (see "Read the Greed") started a bounce to 1284.75
(updated resistance was 1284.00-1284.50) and it stalled out
before another drop to a new low at 1277.00. A pop to
1280.50 updated resistance was sold, and a drop to test the
lows followed. A reversal took the ES over 1280.50, which
turned into support on a dip, and then moved on up to
1285.25 with about 30 minutes left in stock trading. A
pullback held the updated support at 1282.50-1282.00 and ran
up to test the 1288 area again at the close.
The market is in a trading range and the bottom and top were
tested on Tuesday. The Vix buy signals worked after the
market had a deep pullback. However, the market has not held
gains and if there is yet another reversal from that 1288
area then we could repeat the Tuesday action and have more
two-sided action. If that's the case there should be
opportunity on both sides. The ES and NQ both made good
moves both ways. the ES made these swings of 4 points or
greater:
1282.00
1288.50 +6.50
1282.50 -6.00
1286.50 +4.00
1278.25 -8.25
1284.75 +6.50
1277.00 -7.75
1288.25 +11.25
The volatility at these levels should continue. We get the
New Home Sales number 30 minutes into the day on Wednesday,
and then the Fed decision on interest rate policy around
2:15 pm eastern time. For now the market is in an uptrend so
look for early strength to be sold in the first 40 minutes
of trading, and then a pullback to the 1283.00-1282.50 zone
on the ES needs to be defended on a pullback. If there is a
trending move going into the Fed release, it should be
reversed. In any case, after the release expect a quick up
and down move (or vice versa), and then the market should
find a trend and go that direction until the last 30 minutes
or so.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1288.00-1288.75
1290.50-1292.00
1294.50-1295.00
1297.75-1298.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1283.00-1282.50
1277.50-1276.50 (11900 on Dow cash) *major
1274.50-1274.00
1268.25-1267.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2302.25-2303.50
2309.50-2310.50
2318.50-2319.25
2323.50-2324.25
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2293.50-2292.50
2282.50-2281.50 *major
2279.25-2278.50
2267.00-2265.75
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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