TradeStalker's
Support and Resistance Update
12 / 15 / 2010
(Published Since 1996)
...............................................
Dateline: 6:16 pm eastern time, 12/15/2010
The lower open was reversed back up from 1233.75 (1233.50-
1232.50 initial support) and the ES bounced to 1139.50
(1238.50-1239.50 initial resistance) before stalling out. A
small dip then a pop to 1239.25 reversed, setting up a 1-2-3
top and the ES fell to 1235.75 and churned a bit. The
1237.00 level was reached, and unable to clear that, we re-
entered shorts and a drop to 1232.00 followed. A move back
to 1235.25 (1235.00-1235.50 updated resistance) on the ES
and 11500 on the Dow failed, building another rising wedge
in the process. That set up another short and the market
obliged and dropped 6.50 ES points to 1228.75 by 3pm. The
1232.50-1232.00 area was resistance turned support after
1234.00 was reached, and a dip to 1232.50 set up a trade on
the long side and a move to 1234.75 (just under our 1235.00-
1235.50 resistance) before dropping back to 1230.00 just
before the close.
The market acts like it might want to snap back a bit on
Thursday, but if it does the move will likely be sold once
again. For 3 days in a row, the ES either couldn't hold or
rejected the 1240 level. If there is a bounce, the 1235 area
will need to be exceeded and held, not quickly reverse.
Otherwise, the market remains vulnerable and a drop to test/
break the Wednesday lows should be in the cards before an
attempt to move higher.
The futures ended the day well above fair value, so a higher
open for stocks is priced in. If the market opens lower and
can reverse back up in the first 40 minutes at the latest, a
decent bounce can occur. However, don't expect the move to
stick unless the 1235 area is cleared, and can hold on a
pullback. If that doesn't happen, then there should be one
more push lower towards the 1227.25-1226.50 key zone, which
the bulls need to defend by reversing back the move back up
quickly. If that doesn't happen, then the market has
problems and it's possible for the ES to fall another 10
points before getting turned back around.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1234.75-1235.25
1238.50-1239.50
1242.25-1242.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1231.50 - 2201.00
1229.50-1229.00
1227.25-1226.50
1224.25-1223.75
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2207.50-2208.00
2214.50-2215.25
2222.50-2223.50
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2196.75-2196.00
2193.50-2192.50
2188.00-2187.50
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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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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