TradeStalker's
Support and Resistance Update
3 / 16 / 2011
(Published Since 1996)
...............................................
Dateline: 6:16 pm eastern time, 3/16/2011
The ES dropped under the 1268 support in the first 15
minutes but turned right back up just missed 1275 updated
resistance before backing off. The pullback held 1270.50
updated support and pushed to a high at 1276.00. A wedge
formed in the process, and the break was sharp as the ES
dropped to 1255.50 to match the Monday low area. A 7.50
point bounce failed at 1269.00 and a quick drop to test the
low followed. A bounce from 1256.25 stopped at updated
resistance at 1263.75, and that set up a short for a drop
to/ through the 1248-1247 target to 1243.25 low, then
reversed sharply. That bounce could not get over 1263 and
11700 on the Dow cash and hold, leading to another 11.75
point drop into the close.
The market doesn't look like it's out of trouble yet. There
were 2 Vix buy signals and the short term internal gauges are
very oversold. Another drop to the 1243.50-1242.50 zone on
the ES would need to be defended and aggressively bought to
begin to try to make a bottom. More important would be a
show of strength by getting over the 11700 area on the Dow
cash and the 1263-1264 area on the ES. The market remains
vulnerable unless those are cleared, then can hold on a
pullback.
That said, expect another volatile session on Thursday.
There are plenty of swings to trade, if things set up
especially at a good resistance or support area. We had
these swings of 4+ points on the ES on Wednesday:
1267.25
1276.00 +8.75
1255.50 -20.50
1269.00 +13.50
1256.25 -12.75
1263.75 +7.50
1243.25 -20.50
1262.75 +19.50
1251.00 -11.75
That equals 104.75 points of travel in the day's range.
Catch a good part of just one of those is a good day,
especially compared to the dull grind to the 1343 February
top.
If there is early strength on Thursday, it should be a short
under initial resistance. On a drop, the 1243-1242 area is
key on Thursday and must hold near there or we get another
decent sized drop and see the 1238.75-1238.00 area (or
lower) before that good reversal rally occurs.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1258.25
1262.75-1263.75
1267.75-1268.25
1274.50-1276.00
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1251.00-1250.50
1243.50-1242.50
1238.75-1238.00
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2214.50
2222.75-2223.75
2228.75-2229.75
2247.75-2249.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2200.75-2200.00
2187.50-2186.50
2181.00-2179.75
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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