TradeStalker's
Support and Resistance Update
12 / 16 / 2010
(Published Since 1996)
...............................................
Dateline: 5:45 pm eastern time, 12/16/2010
The ES popped up to 1233.75 in the first 10 minutes and then
reversed and plunged to 1227.50 (the 1227.25-1226.50 major
support) about 35 minutes into the day. A reversal off of
that area was sold at first, but the 1229.00 level turned
into good support (and nice exit of a swing trade) and a run
to 1237.00 followed. The updated support at 1235.50-1235.00
held and a double top was was made at 1239.25 (in the
1238.50-1239.50 resistance zone) before rolling over. The
1235.50 support held with about 30 minutes left and the ES
ran up to 1239.75 just before the close.
This is an amazingly resilient market, and we could continue
to move higher (or at least stay range-bound) if the last
hour lows on Thursday are defended on a pullback. The ES
reached the major 1227.25-1226.50 zone, but reversed very
fast as it spent very little time under 1229 level. The
1238.50-1239.50 area gave a double top intraday on Thursday,
but the pullback held what should now be a key support area
at 1235.50-1235.00 on the ES.
On Friday look for early strength to be sold, especially if
the 1239.75 area is tested and rejected. If the market
obliges and gives a decent pullback to test the 1235.50-
1235.00 zone, then beware of a turn back up. As long as that
area holds, then the market avoids trouble. However, if that
area is broken, then any bounces thereafter should then set
up shorting opportunity when the move stalls out. The
Thursday low at the 1227.50 support zone should be a good
short term low. However, if that is somehow broken then the
charts will look ugly and it could mean the start of more
than a 2 and a half day pullback.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1239.25-1239.75 key
1142.50-1243.00 major
1247.00-1247.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1238.00
1235.50-1235.00
1232.00-1231.50
1227.50-1226.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2224.00-2224.75 key
2229.25-2230.25 major
2238.25-2239.25
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2217.50
2215.50-2215.00
2209.25-2208.50
2198.00-2196.00
---------------------------
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
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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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