TradeStalker's
Support and Resistance Update
2 / 6 / 2011
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 2/6/2011
The ES popped up and reversed from 1306.00 (the 1305.50-
1306.50 zone) on the open on Friday, and dropped 6 points to
the 1300.50-1299.75 zone. A bounce off of 1300.00 failed at
1306.25, again, and then an 8+ point drop to the 1298.00-
1297.50 key zone followed. From 1298.00, the ES rallied back
to 1305.75 shortly after 1 pm, then a dip to updated key
support at 1304 followed. The market bounced right back and
the ES reached the 1308.00-1308.50 resistance zone at the
close.
The market has been pulling back in the morning, and then is
able to come right back and rally to new highs. The support
and resistance areas have been acting as magnets and/or
turning points all of the way up. On Friday the ES was able
to get over the 1306 prior high, after failing there on four
or five occasions, and moved on up to the next resistance at
the 1308.00-1308.50 zone. There was good movement both ways.
These were the swings of 4 or more ES points on Friday:
Price CHANGE
1306.25
1300.00 -6.25
1306.00 +6.00
1298.00 -8.00
1308.25 +10.25
For this move to keep its steady trend up, then a pullback
should stay over the 1305.50 area and then push on to new
highs again. If that is the case, then we could see the
1312-1313 area before the move is over. Otherwise, if the
initial support areas are not held, then just below are the
Friday afternoon lows at the 1304.00-1303.50 zone. If a
pullback is not able to hold that area, then the upside pace
is broken and a trip down towards the 1298 area could be in
the cards again.
So, on Monday look to sell early strength in the first 20-40
minutes of trading, and then if the first pullback is able
to hold the 1304.00-1303.50 zone then the upside can
continue and at least test the 1308 area again. However, if
that 1304 area is not held, then the bounces should fail as
the market makes a trip back towards the 1298 area. If that
occurs, especially early, then the market should come back
and rally strong and if things are not changing. If the
market gets down there and isn't able to snap a right back,
then the market might be in for a rough day.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1308.00-1308.50
1312.00-1313.00
1318.00-1318.50
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1305.50
1304.00-1303.50
1298.00-1297.50
1292.25-1291.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2338.75-2339.50
2344.75-2345.50
2352.75-2354.00
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2334.50
2332.25-2331.50
2325.50-2324.50
2317.50-2316.50
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