TradeStalker's
Support and Resistance Update
12 / 9 / 2010
(Published Since 1996)
...............................................
Dateline: 6:44 pm eastern time, 12/9/2010
The market gapped up almost 6.00 points on the ES on
Thursday and reversed from 1235.00 (just under the 1235.50-
1236.50 zone reached pre-open) and then went trend down
until noon. The ES reached 1226.50 and bounced back, and
then after trading sideways just over the 1228 level, a run
up to 1232.50 updated resistance was reversed. A pullback to
1228.75 held in the market got its footing and popped back
up to 1231.75. There was just a small dip, and then at 3:30
PM a short covering run up to 1234.00 started. A pullback to
1231.50 followed that, and then the futures rallied to test
the 1234.00 level just before the close.
The indicators are mostly overbought short term, except not
as much as yesterday. The sentiment grew even more
complacent as the Vix dropped to 17.25. The SPX/VIX ratio
reached 71.50, and is above the top bollinger band, which
hasn't happened since the April 23Th top.
That said, the market is still in uptrends, and although the
pullbacks have been holding, the action is a bit toppy also.
If the initial resistance areas are cleared, and not quickly
reversed, it could keep the upside going in a mini melt-up
type of move. Otherwise, the market will stay in a trading
range for now. To break the uptrend, and put the market
under pressure, the 1224.25-1223.75 zone on the March ES
futures would need to be broken, and not quickly reverse
back up.
So, if there is early strength and the 1230.00-1230.50 zone
on the March ES is reached, beware of a reversal there as
the bids have dried up up there, and then pullbacks begin.
Also, the March NQ has good resistance at its 2201.75-
2202.50 zone. If those are cut through, then the 1234.00-
1234.50 area is in the cards on the upside. However, if
those resistance areas are rejected, then a drop to the
initial support at least should be tested. If held, then no
damage is done and another bounce could occur. If the
initial support is not held, then again the 1224.25-1223.75
zone on the March ES futures would need to be defended or
else a good sized drop could occur.
NOTE: Roll-over to March 2011 futures started today.
The numbers going forward will be for the March
contracts.
Also, there will be no updates after 1pm on Friday due
to an appointment.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1230.00-1230.50
1234.00-1234.50
1237.75-1238.25
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1226.50
1224.25-1223.75
1220.25-1219.75
1217.50-1217.00
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2201.75-2202.50
2207.50-2208.50
2212.75-2214.00
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2196.50
2194.50-2194.00
2189.00-2188.00
2183.00-2182.00
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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.
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