TradeStalker's
Support and Resistance Update
3 / 10 / 2011
(Published Since 1996)
...............................................
Dateline: 7:06 pm eastern time, 3/10/2011
The 1308 area on the March ES was a make/ break area for the
market on Thursday, and the gap down below that on the open
just brought in more selling. All of the listed support was
cut through, and after an hour of trading the market bounced
back to test the open/ high areas. That move ran out of
steam, and the ES dropped 11.50 points to a slightly lower
low. A bounce back failed at dynamic resistance, and a drop
to test the lows followed. A bounce started with 30 minutes
left, but it was sold too and the market dropped to close
near the lows for the day.
The market was wound up tight, and the break of the 1308
level on the March ES was broken (and the bottom of the
triangle pattern) and the energy was released on the
downside. It's the first time the SP500 closed below its 50
day moving average since September 1th, 2010.
We get Retail Sales before the open on Friday. Aside from a
reaction from that, the volatility should continue.
Amazingly, only a couple of the short term indicators are
oversold here. Another down day might change that, but we'll
see.
On Friday, if there early weakness then be on alert for a
reversal back up in the first 40 minutes at the latest. A
bounce in the first 10-15 minutes should fail at the first
resistance levels if the market has lower to go. The major
support is around the 1275 area on the SP500 cash, and would
be around 1272.50 on the ES. If the market gets down there,
it would be back to back big down days, and would need an
almost instant turn around to avoid cascading towards the
1260 area. On top, if something sparks the market to rally,
then the 1300.50-1301.00 zone on the ES is a key hurdle. If
the market goes straight up (low odds) then the 1306.00-
1306.50 area on the ES would fill the gap, and also offer
strong resistance.
June 2011 SP futures resistance
symbols: emini = esh1 / big contract =spm1
1294.25 [first 15 minutes]
1296.50-1297.00
1300.50-1301.00
1302.25-1303.00
1306.00-1306.50
June 2011 SP futures support
symbols: emini = esh1 / big contract =spm1
1288.00-1287.50
1284.50-1284.00
1279.50-1278.50
1274.00-1272.50 -major
June 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndm1
2287.75 [first 15 minutes]
2291.50-2292.50
2296.75-2297.50
2300.75-2302.25
2306.25-2308.00
June 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndm1
2276.00-2275.25
2271.50-2270.50
2262.75-2261.50
2256.25-2254.50
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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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