TradeStalker's
Support and Resistance Update
2 / 15 / 2011
(Published Since 1996)
...............................................
Dateline: 6:26 pm eastern time, 2/15/2011
The lower open on Tuesday was reversed up from 1324.25 on
the ES, which was 1 tick under Monday's 1324.50 low, and a
bounce to the 1328.00-1328.50 area followed. As stated in
the Monday night update, that was key resistance and where
selling should come in. The 1328.00 level was reversed and
the ES dropped to 1322.25 before bouncing back to 1327.75 by
early afternoon. A double top formed and another pullback to
1322.25 held and a rebound started with 90 minutes left in
stock trading. A bounce back to 1327.00 occurred but that
was it as the market ended the day in a narrow range.
On Wednesday we get Housing Starts and PPI before the open,
and then the Fed Minutes at 2 pm. The back to back narrow
range days sets the market up for at least some better
volatility on Wednesday. If there is early strength, it
should be reversed in the first 40 minutes at the latest. If
that 1328.00-1328.50 is rejected again, it could start
another decent pullback.
On the other side of the coin, early weakness has been
setting up trades from the long side for a scalp at least.
If that is going to happen again, then a dip should hold the
1325.50-1324.75 zone for the stair step higher to continue.
So, look for a potential trade on the long side if that area
is held early. If that area is not defended, then the double
bottom at the 1322.25 area needs to be quickly reversed on a
third test, otherwise the market will be losing its
underlying bid and a change on the bigger picture could be
in the works. After the Fed Minutes are released, a quick
move up and down (or the opposite) could occur before a
trend then develops for a move that lasts into the last 30
minutes or so.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1327.00
1328.00-1328.50 *key
1331.75-1333.00 *major
1338.25-1339.00
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1325.50-1324.75
1322.50-1322.25 *key
1320.50-1320.00 *major
1317.50-1317.00
1313.25-1312.50 *mega major
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2382.00
2383.25-2384.00 *key
2387.50-2388.50 *major
2396.75-2398.00
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2379.00-2378.50
2372.25-2370.50 *key
2366.75-2365.75 *major
2359.50-2358.50
2351.00-2349.50 *mega major
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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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.
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