TradeStalker's
Support and Resistance Update
12 / 27 / 2010
(Published Since 1996)
...............................................
Dateline: 5:54 pm eastern time, 12/27/2010
The market gapped down on the open on Monday and while the
ES bounced the NQ continued going lower until about 40
minutes into trading. The ES bounced from 1247.00 to 1251.00
then found support at 1249.75 for nearly an hour. The break
over 1251 kept the trend-up move in gear to the 1253.50-
1254.00 initial fixed resistance. The ES reached 1253.75 but
the dips were small and 1252.75 turned into new trend up
support and it kept the market in rally mode until selling
started with 15 minutes left. From the 1254.25 level on the
ES and 2232.50-2333.50 zone on the NQ, the market pulled
back a bit into the close.
We get the Consumer Confidence release 30 minutes into
trading on Tuesday. It was a trend up day on Monday, but
again buyers backed off after reaching the 1254 level on the
ES and 2234 level on the NQ. Those are the resistance levels
that need to be cleared/ held to break out of the top of the
ranges and possibly get the ES to the 1257.50-1258.50 zone
(or higher if melt-up not reversed).
In order to get through those initial resistance areas, the
initial support at the 1252.75-1252.25 area on the ES needs
to be defended. If it is not held, then the trends will
reverse and a decent pullback should occur. If that is the
case, then a drop towards the 1249.75-1248.75 zone on the ES
(and also the 2220.50-2218.75 zone on the NQ) would be next.
A reversal back up from those areas would need to happen
fast if they are tested, otherwise a break down could be in
the works and confirm a double top. Finally, if there is a
drop into the last hour of trading on Tuesday, beware of a
reversal back up and especially if the NYSE Advancing issues
minus Declining issues is greater than +300. If the breadth
is negative at that time then a bounce won't stick.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1254.25-1255.00
1257.50-1258.50 major
1262.25-1264.00
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1252.75-1252.25 key
1249.75-1248.75 strong
1244.75-1244.25 major
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2233.50-2234.50
2237.75-2238.50 major
2244.25-1246.00
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2229.00-2228.50 key
2220.50-2218.75 strong
2214.00-2213.25 major
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Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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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
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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
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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