TradeStalker's
Support and Resistance Update
3 / 14 / 2011
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 3/14/2011
The ES opened down 11 points and reversed up from just over
the 1289.00-1288.50 support zone, and after a pop and retest
of 1289.50 again, a rally to the updated resistance zone at
1294.50-1295.25 followed. Buyers backed off and a trend down
to a new low for the move at 1281.50, and then 1285 turned
into resistance on a bounce. The first rejection of that
area turned the ES down and it reached 1281.00 while the Dow
cash dipped just under 11900 and the move was reversed. That
1285 level was broken, and then held on a dip, and the
market was able to rally back into the close.
We had good volatility to start the week, and it should
continue the way things look. Once again the market was on
the ropes, about ready to get knocked down, but that 11900
area on the Dow cash (and also 2271.00-2269.25 zone on NQ)
were well bid, and gave the market a decent reflex rally
back. This action is fairly similar to the action seen
leading into the March 3rd high. At this time the indicators
are neutral to slightly oversold. The only "good" thing was
a close under the 50 day moving average, as that sparked a
rally last Friday. There was 1 Vix buy signal, but not
that's not enough to have a strong bias. One thing seems to
good odds, and that would be another test of the 11900 area
on the Dow cash finding buyers. If they get there again,
shorts should be happy to lock in profits and bulls should
want to see that area again to buy. If that is not defended,
then it could end with a mini melt down towards the 1272.50
area which would be very key to hold.
On Tuesday we get the FOMC Rate Decision at 2:15pm. The end
of day pattern was somewhat bearish, and the market did end
with uptrends so if there is early strength that should set
up a scalp at least on the short side. That's especially the
case if there is a run up towards the 1298.50-1299.25 zone
that stalls out. If there is weakness early instead, the
initial support areas are the first key areas to hold. The
NQ double bottomed on midday, and acted like there were
buyers waiting around the initial support areas late on
Monday. If the market tests those initial support areas, it
needs to reverse fast, otherwise the stair step higher will
start to crack and lead to more room to go on the downside.
After the Fed release, there usually is an up-down-up (or
vise versa) move in the first 15-20 minutes after the
release, and then a trend develops. If there happens to be a
trend move into the release, those have good odds of
reversing.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1293.00-1293.50
1298.50-1299.25
1303.25-1303.75
1306.50-1307.00
1311.50-1312.50
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1288.00-1287.50
1285.00-1284.50
1281.00-1280.00
1277.75-1277.00
1272.50-1271.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2293.25-2394.25
2298.75-2229.75
2306.25-2307.00
2312.25-2313.00
2319.50-2321.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2284.00-2282.75
2278.75-2378.00
2271.00-2269.50
2264.00-2263.00
2258.50-2258.00
Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!
Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), and (DOG)
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