TradeStalker's
Support and Resistance Update
2 / 14 / 2011
(Published Since 1996)
...............................................
Dateline: 6:06 pm eastern time, 2/14/2011
The ES opened lower and bounced 3.50 points from the
1325.75-1325.25 support to the 1328.75 resistance, then
dropped 4.25 points to a lower low at 1324.50 around 11 am.
A turn around from that level took the ES up to 1329.50, and
then it went sideways in a 1.50 point range for about 2
hours. At 2:47 pm they broke out above 1329.50 and that
carried the ES to 1330.25 before pulling back almost 2
points. A bounce to test that 1330.25 level was rejected,
and the ES tested the 1328.50-1328.00 updated key support
before running up to 1331.25. After stocks closed the
futures turned down and the ES settled under that 1328.50-
1328.00 zone.
The market was weak early, and then rallied back to new 52
week high ground yet again on Monday. The way the day ended
though looked telling. The SP500 cash would double its 2009
low at 666.79 by reaching 1333.58 and it reached 1332.96
intraday on Monday. The ES nearby contract made a low at
665.75, and that is up 100% at 1331.50. The Monday high on
the ES was 1331.25. After reaching those highs in the last
half hour on Monday, the futures dropped in the last 30
minutes to settle well off of their highs. Hopefully you
weren't trapped buying a potentially important top on
Monday.
So far the Nasdaq 100 is the only average to clear its 2007
high. The Nasdaq Composite was about 60 points shy, and the
Dow and SP500 are a long ways away still. That divergence is
not healthy. Along with the price action on Monday, the Vix
gave a sell signal at Monday's close as the sentiment is
making a subtle shift from overly complacent.
Lately early weakness gets reversed in the first 40 minutes
and then the market rallies back to make a higher high. On
Tuesday, we could see the same action early, however if
there is a test of the Monday highs that stalls/ reverses,
it would set up a gift for a shorting opportunity. At this
juncture, all rallies are suspect as the 1320.50-1320.00
area will be key on a move lower. If that area is tested, it
must be quickly reversed to get a decent bounce underway.
However, if that area does give a bounce, don't expect it to
hold as things could get a bit ugly if the ES fails at/
under the 1328.25-1328.75 area on a bounce attempt.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1328.25-1328.75
1331.75-1333.00
1338.25-1339.00
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1325.25-1324.50
1323.50
1320.50-1320.00
1317.50-1317.00
1313.25-1312.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2382.50-2383.25
2387.50-2388.50
2396.75-2398.00
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2377.00-2376.50
2371.50
2366.75-2365.75
2359.50-2358.50
2351.00-2349.50
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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),
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