TradeStalker's
Support and Resistance Update
1 / 27 / 2011
(Published Since 1996)
...............................................
Dateline: 6:12 pm eastern time, 1/27/2011
The 1292.00-1291.25 support zone on the ES was bought on the
open (1292.00 early low) and the 1297.75-1298.50 resistance
zone was reached and rejected (1298.00 early high). After a
pullback, a pop up reversed the 1296.50 level setting up a
short and a drop to 1290.75 followed. After turning up, the
1293.50-1294.00 area was broken and held on a dip and the ES
went back up to test the 1296.50 level, again. After a dip,
one more push up to 1298.25 was rejected in the last 15
minutes and the ES dropped to 1295.00 before the close.
The 1297.75-1298.50 area on the SP Futures has looked like
the maximum upside since the rally from the 1277 level
started last week. It was rejected early on Thursday, and
then again in the final minutes of trading. The SP500 cash
reached 1301 intraday on Thursday, and there is symmetry at
that level on the cash index. The Dow is working on its 9th
straight weekly gain, something that last happened 16 years
ago in 1995, and it would have to lose 118 points to close
down for the week.
So there is some reason to expect a pullback, at least,
short term. If the initial support areas are held and
reversed early, then a snap back bounce is likely. However,
a bounce will fail to hold over 1296.50 if it acts like it
did on Thursday. The better reward / risk trade at this
juncture is a short if the initial, key, resistance is
tested again and the move stalls/ reverses. If that occurs
and the market then turns back down, it should be the start
of a move to the 1288 area if there is no sign of holding
the 1293.50 area. If that 1288 area is tested, the bulls
need to defend that or the market may be in for a little
break down.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1297.75-1298.50 key
1301.00-1301.50
1305.50-1306.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1294.00-1293.50 key
1288.25-1287.50 major
1283.00-1282.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2328.50-2329.25 key
2333.75-2334.50
2339.50-2340.25
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2318.00-2317.50 key
2312.50-2311.50 major
2299.50-2298.50
Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!
Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), and (DOG)
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
No comments:
Post a Comment