TradeStalker's
Support and Resistance Update
1 / 30 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 1/30/2011
We were expecting a pullback to 1288 at least, and got a lot
more! The pop up open reversed from just over the key
resistance and then went straight to 1283.25 before a small
bounce. The update stated "This is a crashette day" and
although it wasn't *that* bad, we stayed with shorts. After
the early low at the 1272.50 updated support (we covered
shorts just over that), I updated stating that "It looks
like the 1279.50-1280.50 area should offer resistance" and
the bounce reached 1279.25 and then reversed. That was a
nice re-entry on the short side and another 7 point drop to
1272.00 followed. A bounce double topped at 1278 and rolled
over, and it looked like there was a chance for a low with
about 20 minutes left. With 18 minutes left the ES bounced
off of 1271.00 new low to 1274.50 updated resistance before
plunging to 1270.50 at the close.
The 12,000 area on the Dow cash and 1300 area on the SP500
Cash were reversed on Thursday, and then again in the first
20 minutes on Friday. That was the maximum upside before a
pullback, and the market came unglued on Friday as the SP
futures and the Nasdaq futures dropped 29.00 and 71.50
points, respectively, off of their early highs. That kind of
move is not one that the market will come roaring right back
from and zoom up to new highs.
The market is short term oversold and sentiment really
shifted to bearish in a hurry. The Vix jumped 24% to close
over 20 on Friday, after being as low as 15.92 in the
morning. A reversal by the Vix will be needed to take a bit
of pressure off, but volatility should be back in a good way
now. The new VIXY had a nice 7 dollar move on Friday.
There should be more downside coming, as long as bounces do
not break over the 1277.50-1278.50 area on the ES and the
2275.50-2276.00 zone on the NQ and then hold those zones on
a pullback. Those would be the first hurdles to overcome on
a bounce. If those are exceeded, then one more move towards
the 1282 area on the ES would be possible. However, if those
are not exceeded/ held then odds are still good that we will
next test the 1258 area, which is the low area for the year
and an old breakout area on the way up. If the market can
hold there, then a decent bounce back can occur. If the
market gets down there, and cannot hold, then we could see
another 10 points or more cut from the SP500 cash and
futures before the selling gets a respite.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1274.50
1277.50-1278.50
1281.75-1282.50
1287.25-1288.00
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1270.50
1267.50-1266.50
1263.00-1262.00
1258.50-1257.50
1252.50-1251.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2270.00
2275.50-2276.00
2284.75-2286.50
2295.25-2296.50
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2264.00
2259.00-2258.00
2252.50-2250.50
2238.75-2237.50
2228.50-2227.50
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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This publication's primary focus is trading the index
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