TradeStalker's
Support and Resistance Update
2 / 23 / 2011
(Published Since 1996)
...............................................
Dateline: 8:36 pm eastern time, 2/23/2011
The lower open was bought and the ES popped to 1316.50 then
reversed. That was just under the "gift" sell zone at
1317.50-1318.00, and the ES dropped to the key 1308.50-
1307.50 key zone. A bounce to 1314.25 failed, then a drop to
1308.25 held and a bounce made it look like the ES double
bottomed. However, after a bounce to 1313.50 stalled it was
back to the short side as the bounce had no gusto. The ES
went trend down to 1300.25, then bounced to updated
resistance at 1305.00 before a plunge to the 1297.50 level.
Via Audio update, we took profits on shorts at the 1298-1297
zone, and that was timely as the ES rallied back almost 11
points to 1308.25. A pullback held around the 1304 level on
ES and 12100 on Dow cash, and gave it legs to run up to
1311.50 in the last 40 minutes of stock trading. Bounces
couldn't stick and the ES dropped 7 points to 1304.50
support at the close.
The ES was able to bounce from the 1297.50-1296.75 support,
however the upside still appears to be limited. The market
closed right at transition areas from Wednesday, at the 1304
area on the ES and 12100 level on the Dow cash. If those
areas are held then 1 more pop up to the 1312 area is
possible. If that 1304 area is not defended on Thursday,
then a test of Wednesday's lows is likely in the cards
again. If that 1297.50 low area is not quickly reversed
again, then it means more trouble for the bulls and the
1293-1292 area could easily be seen given current
volatility.
So, there could be a bit more upside coming but it should
set up a shorting opportunity at higher levels. On the
downside, if the 1304.50-1304.00 area is not held, then the
market can easily test/ break the Wednesday lows before a
short covering bounce occurs. The Vix buy signals should
be a plus as long as 1304 is not broken/ held on a bounce.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1311.50-1312.00
1316.75-1317.50
1322.25-1323.00
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1304.50-1304.00
1298.00-1297.50
1292.50-1291.50
1288.50-1287.50
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2312.75-2314.00
2324.50-2325.25
2333.00-2334.00
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2298.75-2298.00 *pivotal
2287.00-2285.50 *major
2278.50-2277.50
2270.50-2268.50
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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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