TradeStalker's
Support and Resistance Update
12 / 20 / 2010
(Published Since 1996)
...............................................
Dateline: 6:26 pm eastern time, 12/20/2010
The ES gapped up to the 1243.00-1243.50 resistance on
Monday's open (1243.50 early high) and when the 1241.75
level broke the downside was trend down 7 ES points to
1236.25 by 11:15 am. The NQ made a double bottom at that time
and then a rally started. A test of 1242 gave just a small
dip and then after 1242 was cleared it turned into support
for a move to 1245.75. A small double top at that level was
reversed and a drop to 1242.25 support followed. A bounce to
the updated 1243.75-1244.25 zone was sold and the ES dropped
to 1241.00 just before settlement.
The past several days the market has sold off early, only to
come back and close at new highs for the year. On Monday we
had it both ways again, with the gap up open being sold and
then the first good sized drop was bought. This time
however, the market found a high in the 2:30-2:40 pm time-
frame and sold off into the close. The market doesn't like
it in new high territory the first time around. If there is
another run up to test/ exceed the Monday highs, it should
only set up another good odds shorting opportunity when the
move stalls out.
On Tuesday we could get a bit more of the same action. If
the initial support is held, and reversed, then a pop up to
test the initial resistance areas is possible. If the market
is weak then the initial resistance areas will be rejected,
if reached at all. However, if the market is strong enough
to get back over the initial resistance areas, and then
holds over the 1243 area on the ES on a dip, then the trends
turn up and it would be possible for a move towards the
1247.50-1248.50 zone before a turn back down. If that area
is seen, and the move stalls or shows rejection of that
zone, then it should set up a good reward/ risk opportunity
on the short side.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1243.75-1244.25
1245.75-1246.25
1247.50-1248.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1240.00-1239.25
1236.25-1235.50
1232.00-1231.50
1227.50-1226.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2226.50-2227.25
2230.00-2231.00
2238.25-2239.25
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2216.50-2215.50
2205.50-2204.50
2199.50-2198.50
2192.75-2192.00
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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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
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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
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is substantial. You can lose more than your original
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