TradeStalker's
Support and Resistance Update
2 / 27 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 2/27/2011
The 8 point gap up open on the ES was a surprise on Friday
morning, so we waited for the upside to stall at the
1317.50-1318.00 area to short, and a drop from 1318.00 down
to the 1312.25 updated support area occurred. That led to a
break/ hold over 1317 and a move up to 1320.00 then churning
happened for 2 hours into the close.
The market finally has seen a return of volatility. Last
week the ES had 23 different swings of 4.75 points, or more,
intraday. After topping at 1343.00, the ES dropped 50.50
points to the 1293-1292 zone on Thursday, then got turned
back up. The market got very oversold, and the Vix reversed
back down after a huge jump mid-week, sparking more upside
in stocks and by Friday afternoon the market averages had
recouped a bit more than half of its losses.
From here, the market has worked off the oversold condition
and the upside appears limited. On Monday we get the Chicago
PMI 15 minutes into trading, and the Pending Home Sales at
10 am. If there is early strength, it should be reversed in
the first 40 minutes of trading. If the 1320 level on the ES
broken through, it needs to hold or a reversal occurs. On
the first pullback, the initial support is going to have to
hold, or the next support areas will be next and key to
hold. If the 1312 area is not defended, then a move back
towards the 1308 area is likely in the cards before buyers
see a reason to step back in.
March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1319.50-1320.25
1322.50-1323.50
1327.50-1328.25
March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1317.00
1312.50-1312.00
1308.50-1308.00
1302.50-1302.00
March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2348.25-2350.25
2355.50-2356.50
2364.50-2366.25
March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2343.75
2335.25-2334.50
2326.25-2325.25
2318.75-2317.75
---------------------------
REMINDER:
Real Time subscribers can view these updates, and also get
real time instant messages, on the web at this site:
http://www.tradestalker.com/RBIchat.htm
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
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.
*************************************************
No comments:
Post a Comment