TradeStalker's
Support and Resistance Update
12 / 21 / 2010
(Published Since 1996)
...............................................
Dateline: 5:59 pm eastern time, 12/21/2010
The ES gapped up again on Tuesday and had trouble getting
through the 1247.50-1248.50 zone initially, but after
breaking/ holding over that zone the ES stayed in trend up
mode into the last 30 minutes. After finally getting through
the 1250 level, the ES reached 1251.25 and then dipped to
1249.50 before bouncing into settlement.
The market continues its melt-up mode but there will soon be
a sizable pullback. As long as the 1249.50-1248.75 zone on
the ES is defended, the trends will stay up and the market
can try to move towards the 1252.00-1252.75 area, or
possibly a bit higher on the ES. However, if that zone is
broken, then it opens the door for a deeper drop and
possibly a short to intermediate term top.
There is a batch of economic data released before the open
on Wednesday. Then 30 minutes into trading we get the
Existing Home Sales data. So, if an early dip holds the
1249.50-1248.75 initial support and turns back up, then
there should be a bounce back to the 1252 area on the ES
before a pullback/ selloff begins. If the ES is strong
enough to blow through 1252 and hold, then a last gasp run
towards the 1257.75-1258.50 zone is possible. If that IS
reached this week, be on reversal alert for a very good odds
short. On a pullback, if that 1249.50-1248.75 support zone
is not defended, then the upside pace will be broken and the
bounces should then have trouble holding any gains.
NOTE: This will be the last nightly update, as we will
be taking Thursday off. Everyone have a great Holiday!
The next nightly update will be sent on Sunday night.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1252.00-1252.75
1254.50-1255.00
1257.75-1258.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1249.50-1248.75
1245.75-1245.25
1240.00-1239.25
1236.25-1235.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2238.50-2239.25
2244.00-2244.75
2250.50-2250.25
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2232.00-2231.50
2225.00-2224.25
2216.50-2215.50
2205.50-2204.50
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
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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