TradeStalker's
Support and Resistance Update
12 / 29 / 2010
(Published Since 1996)
...............................................
Dateline: 7:03 pm eastern time, 12/29/2010
A gap up open was sold on Wednesday, starting a 1.50 point
drop on the ES from 1257.00 to 1255.50 to fill the gap on
the daily chart. A bounce to the top side of the 1257.50-
1258.50 major zone was tested 3 times in the afternoon, and
unable to clear major resistance at the 1258.50 high (where
we got swing trade short), the market rolled over and the
futures made their lows in the final minutes of trading.
We get Initial Claims before the open on Thursday, and the
Chicago PMI 15 minutes into the trading day. Then, at 10am,
we get the Pending Home Sales number. The market has been
making new 52 highs commonplace lately, but if the
indicators are right, the market might have made a short
term top on Wednesday. It will take a break and hold over
the 1258.50 level on the ES, and the NQ would also need to
break and hold over its 2235.50 resistance area, otherwise
the market will be vulnerable. Being the last day of the
year, the action could be a bit odd, but unusual action is
something often seen before a top.
On Thursday, as long as the initial support holds early
(meaning no follow through selling) then there is still a
chance for 1 last pop up, but a bounce should be used to get
into a swing trade on the short side. As stated, a move over
the 1258.50 resistance (posted on the resistance table for a
week or more) will be needed to nullify this. If I'm wrong
and 1258.50 and also 2235.50 on the NQ are exceeded, and
held on a dip (not quickly reversed) then a move towards the
1262.25-1264.00 area is possible and there would be an
outside shot of seeing the 1272-1275 area, but lets see how
the market handles that 1258.50 area first.
Lastly, Thursday is last trading day of the month and year.
We want to take this opportunity to wish you and yours all
safe and Happy New Year! We'll be back Sunday night with the
first update of 2011, my 15th year of writing these updates.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1257.50-1258.50 major
1262.25-1264.00
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1255.00
1253.75-1253.00
1249.75-1248.75 strong
1244.75-1244.25 major
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2234.50-2235.50 major
2239.75-2242.50
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2228.50
2225.50-2224.25
2218.50-2217.75 strong
2208.50-2207.25 major
---------------------------
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.
*************************************************
No comments:
Post a Comment