TradeStalker's
Support and Resistance Update
1 / 2 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 1/2/2011
The volatility picked up a bit late last week, but the
market is still spinning its wheels up here. The SP500 cash
has closed in a 3 point range between 1256.77 and 1259.78
for 7 straight days. The rallies have not been able to stick
until Friday. Lately the market has rallied early, then gets
sold off. After getting to the bottom of the range, shorts
get uncomfortable while bulls buy them back and reflex
rallies follow. However, as soon as the run up stalls,
shorts get positioned as buyers pull bids and then the
market closes with a drop to end the day. That is toppy
action, and what we got all of last week except for the last
20 minutes for futures trading on Friday.
Still, the market has refused to break down too. That's what
makes a range. A move out of this "comfort zone" should
occur soon. If there is yet another failure to break/ hold
over the 1258.00-1258.50 zone on the ES, and/or we get a
close under that 7 day range, then the market will be
changing on the short to intermediate term. Otherwise, as
long as the 1255.25-1254.75 area is held, break out higher
(that is not quickly reversed) could get the ES towards the
1262.25-1264.00 area before a pullback occurs.
On Monday we get the ISM manufacturing index 30 minutes into
trading. This has been a market mover lately, and could be
something to move the market out of this range. If there is
a pop up and the ES reverses from the 1258.50 area, or gets
over that but then quickly turns back down, then that would
set up a good reward/ risk shorting opportunity. On the
other side of the coin, the ES broke 1255 area late Friday,
and if that is held on an early dip, then the market is
still in uptrends and can try to take out the 1258.50 area.
If that isn't held, then beware that the ES bounced from the
1249.50 area twice last week. If the that area is tested
early on Monday, but gets footing and reverses back up, then
the bottom side of the range holds again and a decent snap
back bounce could occur.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1258.00-1258.50 key
1262.25-1264.00
1267.75-1268.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1255.25-1254.75 key
1252.00-1251.25
1248.75-1248.25 major
1244.75-1244.25
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2225.50-2226.50 key
2234.50-2235.50
2242.00-1243.00
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2217.00-2216.00 key
2212.50-2211.50
2207.50-2206.50 major
2201.50-2200.25
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 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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