TradeStalker's
Support and Resistance Update
2 / 22 / 2011
(Published Since 1996)
...............................................
Dateline: 6:06 pm eastern time, 2/22/2011
The ES opened down 15.75 points, bounced back from 1323.25
to 1334.50 then stalled out. After a pullback I stated:
"small rising wedge. 31.50 needs held" and when that
1331.50 broke: "28.50 test likely on this. not a buy,
short under 33.50 area"
The ES reached 1333.25 and reversed, starting a trend down
move that fell 21.75 points off its high to just over the
1312.50 support. A bounce to 1317.50 (new resistance at
1317-1318) stalled/reversed setting up a move to 1310.25
with an hour left in stock trading. The market held together
and bounced into the close.
The market finally broke down, and a rally back now would
only set up a repeat of the selloff. The Vix jumped 26% on
Tuesday, but unless/ until there is a reversal, that can
still go higher. The move down didn't show any panic type of
selling though, and despite closing breadth that was almost
8:1 in favor of losers, the closing Trin was just 1.27. If
there was capitulation that closing Trin would have been
3.00 or higher.
Wednesday should be a more 2-sided day, unless the 1308 area
on the ES is broken and not quickly reversed. A higher open
would be a gift short if there is a test/reversal from the
1317.50-1318.00 zone. That area is the first hurdle to
overcome, and hold, to avoid more trouble for the bulls.
Even if it is, a move to the 1322.25-1323.00 area should be
rejected then if the market is topping, or has topped
already. That should be the maximum rebound area on
Wednesday. However, if that 1317.50-1318.00 zone isn't
pushed through, then the bears are still in control short
term and the 1308 area on the ES should be key on further
weakness. If that is not defended, then back to 1300 or just
under that should be in the cards before a decent snap back
rally can begin. If the ES drops to the 1297.50-1296.75
area, it must turn up pronto, otherwise we get another big
down day.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1315.00-1315.50
1317.50-1318.00 key
1322.25-1323.00 strong
1326.75-1328.00 major
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1313.00-1312.50
1310.00
1308.50-1307.50 major
1302.00-1300.50
1297.50-1296.75
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2324.00-2324.50
2333.00-2334.00 key
2339.00-2340.00 strong
2351.75-2353.00 major
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2318.00-2317.00
2315.00
2308.75-2307.75 major
2300.50-2298.75
2290.50-2288.50
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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