02/01/11 TradeStalker's E-Mini Futures Support and Resistance Updates

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TradeStalker's

Support and Resistance Update

2 / 1 / 2011

(Published Since 1996)

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Dateline: 5:56 pm eastern time, 2/1/2011

The ES gapped up 8+ points and kept going in trend up mode
to the updated 1305.50-1306.50 zone. A pullback held at
1302.00, and a bounce to a high at 1306.00 occurred with 8
minutes left in stock trading. That was rejected and a
pullback towards 1302 occurred after stocks closed. We
bought a small position in put options when the ES was at
1305 and will hold those overnight.

The Vix gave a number of buy signals that I didn't trust
coming into Tuesday trading, and the signals proved to be
correct. Now, for the first time in months, my RBI
Oscillator poked into sell mode and I'll not ignore that.
Tuesday was a trend up day, and back to back trend moves are
rare so Wednesday should be a two-sided affair at best. The
rallies should have trouble holding, but a decent sized
pullback should find buyers below, especially if the 1298-
1297 area on the ES is tested and held.

So, on Wednesday look to sell early strength if there is
some to set up a good odds shorting opportunity. If that
plays out, then a pullback towards the 1298 area should hold
if the market is going to have 2 sided action. If that area
is not defended, then a move back to the lower 1290's is
likely before a bounce can occur. If the market opens lower
and turns up from support, then a test of the 1306 area
could still occur but will be sold unless the market does
the unusual.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1305.50-1306.50 *key
1308.00-1308.50
1312.00-1313.00 *major


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1302.00-1301.50
1298.00-1297.50
1292.25-1291.50
1288.50-1287.50
1284.50-1283.75 *major

March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2327.50-2328.25 *key
2332.25-2333.00
2338.75-2340.00 *major

March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2319.00-2318.00
2212.00-2310.50
2296.50-2295.25
2291.00-2290.25
2286.50-2285.75 *major

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Good Trading,
Mike Reed
TradeStalker.com

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), and (DOG)