TradeStalker's
Support and Resistance Update
1 / 20 / 2011
(Published Since 1996)
...............................................
Dateline: 6:12 pm eastern time, 1/20/2011
The ES opened lower and reached the 1270.75 support about 8
minutes into trading, and then a bounce to 1278.00 followed.
That set up a shorting opportunity and the market went trend
down to the 1268.50-1268.00 zone (a 1267.50 low) and bounced
again just before noon. The 1274 area turned pivotal, and
once that was overcome the ES rallied to 1280.25 (right at
the 1280.00-1280.50 initial resistance). That was rejected
and a dip to 1278.00 followed, but it didn't hold and a drop
back to the 1274.00 level occurred in the last 30 minutes of
trading and then the market firmed into the close.
The intermediate term gauges are looking worse, but short
term the market is a bit oversold. The 1274 area on the ES
was pivotal on Thursday, along with 11800 on the Dow cash.
As long as that is held early, then the market can try
to move a bit higher, maybe back to test or break the
1280.00-1280.50 area. That would be key on the upside. If
the market cannot push through those Thursday afternoon
highs and stick, the market will remain vulnerable for more
on the downside.
So, look for the initial support areas to be key in the
early going if there is weakness. As long as those areas are
defended, then a move back towards the 1280's is possible
before the bids dry up and the market pulls back again. If
there is early strength first, then look for a shorting
opportunity if the 1277.50-1278.25 initial resistance is
reversed. If it's not, then the 1280.00-1280.50 area would
be next, and then a dip would need to hold 1278 to avoid a
reversal, and decent sized drop once again. If the ES breaks
under that 1274 area again, and cannot turn back up, then
another air pocket drop could occur.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1277.50-1278.25
1280.00-1280.50
1283.00-1283.75
1287.75-1288.25
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1274.50-1274.00
1272.50-1271.50
1268.00-1267.50
1265.00-1264.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2287.50-2288.50
2293.50-2294.50
2299.00-2300.50
2311.00-2312.25
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2279.00-2278.00
2274.50-2273.50
2267.50-2266.50
2260.50-2359.50
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Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
guarantee that future results will be profitable.
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This is not an endorsement or recommendation of the SP500
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