TradeStalker's
Support and Resistance Update
12 / 13 / 2010
(Published Since 1996)
...............................................
Dateline: 5:46 pm eastern time, 12/13/2010
The ES gapped up to 1240.50 on the open on Monday, and that
early strength was sold and the ES dropped to 1236.50, just
missing a gap fill by 1 tick, then turned back up. The ES
bounced to 1241.50 and then pulled back and went sideways
for a few hours. A pop to 1242.00, right at the 1241.75-
1242.50 resistance, gave a double top (and good short entry)
and the break of 1240.50 then pushed the market down to new
lows for the day, with the ES reaching 1235.25 before the
close.
We get PPI and Retail Sales before the open on Tuesday, and
a Fed Rate Decision at 2 pm. the Vix dropped under 17 on
Monday and turned up, and that sentiment shift gave 2 sell
signals. The market was under distribution almost all the
way up to the 1242 double top on Monday, and finally let go
at the end of the day. That 1242.00-1242.75 zone on the ES
area should be hard to break and hold if reached again.
On Fed days, a trend move into the release tends to be
reversed, so if that happens beware. The market ended the
day in downtrends, so if there is early weakness it should
set up a snap back rally. If that occurs, don't expect it to
stick. If the initial resistance is not rejected, but
instead is cleared and the 1242.00-1242.75 zone on the ES
and/or 2220.00-2220.50 area on the NQ is tested again, it
should be sold. If the market pushes through those areas,
then a last gasp run up towards the 1247.25-1248.00 would be
possible.
On the downside, if the initial support is tested and not
quickly reversed, the 1230.50-1230.00 area should be a make/
break area. If we can hold that area, then a bounce of at
least 5 points on the ES should occur, otherwise a decent
sized pullback/ correction would be underway.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1238.75-1239.50
1242.00-1242.75
1244.50-1245.00
1247.25-1248.00
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1234.00-1233.25
1230.50-1230.00
1227.25-1226.50
1224.25-1223.75
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2216.50-2217.25
2220.00-2220.50
2224.25-2225.50
2237.50-2238.50
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2106.25-2205.50
2198.75-2197.75
2193.50-2192.50
2189.00-2188.00
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
guarantee that future results will be profitable.
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This is not an endorsement or recommendation of the SP500
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