TradeStalker's
Support and Resistance Update
1 / 4 / 2011
(Published Since 1996)
...............................................
Dateline: 7:09 pm eastern time, 1/4/2011
I don't often toot my own horn, but in Monday night's update
I stated that:
"The ES was unable to hold over 1270 and now a test of
the Monday highs will set up a very good shorting
opportunity."
and
"...that first decent bounce should set up a shorting
opportunity then when the upside stalls out. That will
be the case as long as the 1270 area is not exceeded
and held, instead of reversing as it should if the
market is going into pullback mode."
It was also noted about the 1258.50-1258.00 zone:
"...the big open left a gap on the daily, weekly,
monthly, and yearly charts so far. Odds are pretty good
that we revisit that area on a pullback fairly soon."
The ES popped up to 1270.00 on the open and turned back down
and that was what we were looking for, and an 11.75 point
trend down move to 1258.25 on the ES (the 1259.00-1258.00
support was our cover zone via audio) and a 25.50 point drop
to 2236.50 on the NQ occurred shortly before 1pm eastern
time. From there the market went trend up and reached the
1266.00 target/ resistance zone before 3:30pm. The pullback
held new support at 1263.00-1262.25 and snapped back into
the close.
The ES had good moves both ways and by holding at the
1258.50-1258.00 zone the market averted a bad day. The way
the market is acting, we could form a new trading range with
good resistance around Monday's highs and good support
around the Tuesday lows. The Nasdaq, which lead the way up,
looks to be top heavy though and should keep the pressure on
if it can not get through the initial resistance zone on
Wednesday.
The weight of the evidence favors more two-sided action
ahead, and possibly a drop to/through Tuesday's lows. That
would be the case if the initial support around the 1262.72-
1262.25 area on the ES and 2244.50-2243.50 area on the NQ is
not defended on Wednesday. So. if there is a higher open, it
should offer another good shorting opportunity for a
pullback to the initial support areas, at least. If those
support zones are not held, then bounces should fail to
break/ hold over the 1266.00-1266.50 zone on the ES and also
the 2252.00-2252.50 zone on the Nasdaq 100 futures. Those
areas will be shorting areas if that support is broken and
the market bounces back. If the 1258 area on the ES is
tested again, then another turn around would need to happen
pretty fast, otherwise the move will turn into more than
just a pullback in an uptrend. On the other side of the
coin, if there is further strength and the 1270 area is
tested again, then beware that the 1268.50-1268.00 area
would then need to hold or a reversal will have occurred and
start a good sized drop.
NOTE: There will be no intraday updates on Wednesday after
noon due to an appointment. Hopefully the nightly update
will not be effected.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1266.00-1266.50
1269.50-1270.25 strong
1272.50-1273.00 key, sell zone
1275.50-1276.50 major
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1262.72-1262.25 key
1258.50-1258.00 strong
1255.25-1254.75
1252.00-1251.25 major
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2252.00-2252.50
2261.50-2262.00 strong
2266.00-2267.00 key, sell zone
2272.00-2273.00 major
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2244.50-2243.50 key
2237.00-2236.00 strong
2230.75-2229.50
2225.50-2224.50 major
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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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
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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