TradeStalker's
Support and Resistance Update
2 / 3 / 2011
(Published Since 1996)
...............................................
Dateline: 6:28 pm eastern time, 2/3/2011
The ES opened at the 1298.00-1297.50 support and bounced to
1301.50 resistance, then dropped to 1298.00 again. A pop to
1301.25 was rejected and unable to hold 1300, the market was
sold hard until reaching the 1292.25-1291.50 support zone.
The ES rallied back to 1300.50 and stalled out, however the
pullback held the 1298.50-1298.00 updated support and there
was a break out to the upside. The move reached 1305.75
(1305.50-1306.50 key resistance) and then pulled back to
updated support at 1303.50 by the close.
The internal gauges are at/ near turning points, and at
these levels the Friday action should be telling for the
short to intermediate term health of the market. On one side
of the coin, the intermediate term internal gauges are
trying to turn up. At the same time, short term gauges are
nearing overbought areas, and the sentiment has gone from
overly bearish to overly bullish. The ES has finally
overcome the 1300 level, and now needs to hold this area.
The early Friday action will be about the Employment report.
The trends are up, but the market hasn't been able to get
through the 1306 area twice now. If that area is cleared,
and not rejected, then a mini melt up towards the 1312.00-
1313.00 area is not impossible. If that was to happen, it
would set up the easiest shorting opportunity in a long
time. In fact, there will likely be selling into any further
strength up here as the reward/ risk is not great on new
longs up here.
So, if that 1306 area on the ES is rejected again, then
a pullback would need to hold over the 1300.50-1299.75 zone
on the ES, or 1298 at the worst. As long as the market keeps
its "buy the first good pullback" mode and holds that area,
then the market remains unharmed. However, if that area is
not defended, then something is changing and a deeper drop
could occur. The low on Thursday was at the 1292.25-1291.50
zone, and that is major now on the short term.
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
1303.00
1300.50-1299.75
1298.00-1297.50 *strong
1292.25-1291.50 *major
1288.50-1287.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2325.50-2327.75 *key
2332.25-2333.00
2338.75-2340.00 *major
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2320.50
2317.50-2317.00
2312.50-2311.50 *strong
2296.50-2295.50 *major
2291.00-2290.25
Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!
Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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)
www.TradeStalker.com
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.
*************************************************
No comments:
Post a Comment