TradeStalker's
Support and Resistance Update
1 / 9 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 1/9/2011
The ES popped up to 1274.00 on the open on Friday, and that
early strength was sold and the ES dropped to 1267.75 (just
over the 1267.25-1266.25 initial support), and then a quick
bounce back to the 1272.75 initial resistance occurred. The
1272.00-1272.50 zone on the ES and the 2281.25-2282.50 zone
on the NQ were both reversed, and a trend down move to the
1258.50-1258.00 support zone on the ES and the 2252.75-
2251.50 support zone on the NQ lasted until just before 1
pm. That was a 15 point move on the ES and a 29.25 point
move on the NQ, and then the market reversed. The 1262 level
was broken and held and the ES rallied back to the 1268.50
pivotal level just before the close.
The market is getting more volatile, which is a good change.
The first week of the year is in the books, and we have a
toppy acting market currently, or range bound at best. Last
week the ES failed to hold over the 1272 level for very
long, and also failed to stay under 1259 for very long
either.
The internals have not kept up with price, and now my
intermediate term internal gauges are beginning to roll
over. The very short term internal gauges are close to
getting oversold. In any case, it would take good follow
through buying that gets both the ES and NQ over their
initial resistance areas, and then holds them on a pullback,
for the market to avoid another drop. That would be a change
of character from last week's action, as the bounces have
not been able to stick. If we do get another drop, the
1258.50-1257.50 zone on the ES and the 2252.75-2251.50 zone
on the NQ will need to be defended for a third time,
otherwise there is a short to intermediate term top forming.
Look for early strength to be sold, and then if the first
decent pullback shows signs of turning back up from the
1264.50-1264.00 zone on the ES and/ or the 2265.50-2264.50
area on the NQ, a snap back rally is possible. If broken,
then the 1258.50-1257.50 zone on the ES and the 2252.75-
2251.50 zone on the NQ will need to hold or things will be
changing.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1268.50-1269.00
1274.00-1274.50
1278.00-1278.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1267.00-1266.50
1264.50-1264.00
1262.00
1258.00-1257.50
1252.25-1251.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2276.00-2277.00
2281.50-2282.00
2288.25-2289.50
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2272.50-2271.75
2265.50-2264.50
2260.50
2253.00-2251.50
2243.00-2241.50
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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