TradeStalker's
Support and Resistance Update
12 / 14 / 2010
(Published Since 1996)
...............................................
Dateline: 6:56 pm eastern time, 12/14/2010
The ES popped up to 1239.00 (1238.75-1239.50 initial
resistance) resistance on the open, and then dropped 2.75
points to 1236.25 (Monday's close) and then turned up. A
rally to 1240.75 followed, then after a drop held the 1238
updated support, a stair step trend-up to 1241.50 lasted
into the Fed release. After the release, a drop then a pop
to 1242.25 resistance was rejected, and a drop to 1237.00
followed. A feeble bounce to 1239.75 stalled out, allowing a
good shorting opportunity for a drop to the 1234.00-1233.25
zone on day trades. The ES reached 1232.75 with 20 minutes
left in stock trading, and then bounced to 1237.50 by the
close.
The ES failed at 1242 on Monday and Tuesday and has turned
into a key resistance. The market is still range bound, but
the crowd is extremely bullish. The 10 day put/ call ratio
reached .47 and is at its lowest level in many months. It's
also 2 standard deviations from the yearly average. The Vix
is also showing complacency. The crowd is usually wrong at
highs/ lows and these are red flags.
The averages made new yearly highs on Tuesday, but the
internal gauges are not in very good shape either. The ES
has found the initial resistance zones as pivotal lately.
They should be hard to break and hold. If they do, then the
ES sure hasn't held over 1241 very long, so if that level is
exceeded and then broken back to the downside, then it
should set up a very good shorting opportunity.
That said, with a poor technical backdrop along with overly
bullish crowd (and a market having trouble holding gains)
there should be more to go on the downside on Wednesday. If
there is early strength, it should set up a very good
reward/ risk opportunity on the short side if the initial
resistance is reached. On the downside, if the 1233.50-
1232.50 zone on the ES is tested, and then reversed back up,
a decent bounce could occur. If that happens, then a bounce
back of around 4-5 points on the ES should fail if the
market is going to work its way lower and head towards the
1230.50-1230.00 zone, and possibly fall towards the 1227.25-
1226.50 area where there should be key support. If that zone
is not reversed, then a top of some sort will be confirmed
short term, and the downside could gather momentum. If that
zone is reversed, then a good rally could still occur.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1238.50-1239.50
1242.25-1242.50
1244.50-1245.00
1247.25-1248.00
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1233.50-1232.50
1230.50-1230.00
1227.25-1226.50
1224.25-1223.75
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2216.50-2217.00
2200.00-2220.50
12224.25-2225.50
2237.50-2238.50
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2205.00-2204.25
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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permission.
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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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