02/10/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 10 / 2011

(Published Since 1996)

...............................................

Dateline: 6:16 pm eastern time, 2/10/2011

The ES opened almost 8 points lower and bounced from the
1308.50-1308.00 major area and then rallied back to the 1317
area before pulling back. The 1313.50-1312.50 area held on a
pullback, and a move to 1319.50 followed, but the move
didn't stick and the ES pulled back to the 1314.50 updated
support. Another run up failed at 1318.50, but the 1315.25
level on the ES and the 12200 level on the Dow cash were
reversed and a sprint to a 1320.50 high was followed. A wild
ride up promptly reversed, and another drop to 1315.25
occurred then the ES ran back up to 1319.50 before the
close.

The market was able to rally off of the 1308.50-1308.00 area
on the ES on Thursday, which is the good news. The bad news
is that the 1320 area was rejected again. Also, the Nasdaq
futures, which rallied back nicely from its early low at
2340.00, have had all sorts of trouble pushing through the
2363-2365 area. That area has been rejected 8 times over the
past 2 days.

So, things look to be changing short term and bounces should
have trouble getting to, let alone holding, over the 1320
level on the ES and 2365 on the NQ. On the downside, the
initial support will need to be quickly reversed to avoid
trouble on Friday. If the market gets down there early and
reverses, then a good snap back rally could occur. However,
even if that happens, the market will set up a better
shorting opportunity as soon as upside momentum stalls.

If the initial support is broken and held instead of
reversing back up, then a trip back to the 1308 area will
probably be in the cards. That area would need to be quickly
reversed, and leave a double bottom on the charts, to get a
decent rally in gear. If that area is not held, then the
1304.00-1303.50 would be next, and would be key to hold to
avoid seeing the 1298-1297 area again.

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

1320.00-1320.50 *key
1322.75-1323.50
1328.25-1328.75
1332.50-1333.00


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

1315.25-1314.50 *key
1311.25-1310.50
1308.50-1308.00 *major
1304.00-1303.50
1298-1297


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

2364.50-2365.00 *key
2368.50-2369.50
2374.75-2376.00
2384.00-2385.00


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

2355.00-2354.50 *key
2349.50-2348.50
2340.50-2339.50 *major
2330.25-2328.75

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

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)

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.
*************************************************