TradeStalker's
Support and Resistance Update
1 / 24 / 2011
(Published Since 1996)
...............................................
Dateline: 6:56 pm eastern time, 1/24/2011
The lower open at the 1279.00-1278.50 initial support gave a
move up to the 1282.75-1283.25 initial resistance zone, then
dropped back to the 1279.00 level and bounced again. The
bounce failed at 1281.75 but a third pullback to 1279.00-
1278.50 held and the 1282.75-1283.25 zone was tested again.
The 1280.50 level held and the breakout took the ES to the
1287.50-1288.25 key resistance before buyers backed off. A
break of the 1285.50 updated support led to a drop to
1283.75 updated support and then ran up 6 points in the last
hour to new highs for the day by the close.
the oversold rally on Monday erased many of the short term
oversold extremes that were present. however, the Vix
reversal from a 20 day high on Monday gave several buy
signals on Monday's close. we'll see about that, as we get
the Consumer Confidence release 30 minutes into trading on
Tuesday. At these levels, the market should take a poor
number as an excuse to sell stocks. If that's what happens,
then the last hour lows from Monday will need to be defended
to avoid a potential 1-2-3 type of top on the daily charts.
So, on Tuesday look for early strength to set up a shorting
opportunity if the initial resistance areas are reached and
rejected. If the market obliges and there is a pullback that
holds the initial support areas, then the uptrend can
continue and set up a trade on the long side. If the initial
support isn't held, then the 1284.00-1283.50 zone on the ES
needs to hold or a reversal of trends will occur. If the
market does get hit with a decent sized pullback, then the
1278.50-1278.00 zone would be a major area to hold to avoid
a topping pattern.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1290.50-1292.00
1294.50-1295.00
1297.75-1298.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1286.50
1284.00-1283.50
1281.00-1280.50
1278.50-1278.00
1274.50-1274.00
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2299.50-2301.00
2309.50-2310.50
2318.50-2320.25
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2294.50
2292.50-2291.75
2287.00-2286.25
2279.25-2278.50
2267.00-2265.75
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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