TradeStalker's
Support and Resistance Update
3 / 20 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 3/20/2011
The market started out will a selloff last week and it
lasted into Wednesday afternoon. The internal gauges and Vix
buy signals gave the market a reason to rally, and after
Thursday's gap up open the ES topped at 1274.50 and then
backed off. The pullback to 1261.50 area on the ES and 11700
on the Dow cash were held, and buyers took over again. On
Friday the ES gapped up 15.75 points and at the 1284.50
resistance, and that set up a selling opportunity as the ES
reached the 1277-1276 target on the way to 1275.00. We
called it a day, but did update late that 1272.50 was
support and the 1275.50-1276.50 zone was bounce resistance
that needed cleared/ held. That bounce topped at 1276.75 and
a drop to 1270.75 occurred around 3 pm. A bounce brought the
market back off its lows and the market held together to end
the week.
On Friday the market had trouble holding on to gains as the
high was made on the open and low made with an hour left to
trade. The volatility was still good, despite the range
contraction. The short term internal gauges that were so
oversold on Wednesday have returned back to neutral, so that
prop has been lifted. The intermediate term internal gauges
topped before price and still are looking bad. The market
still looks skittish, and given the damage done recently,
the upside should have a hard time holding gains.
On the flip side of the coin, on the deeper drops the market
has been able to find support, turn up and give a decent
bounce. This is what is expected this week. If the market
retreats back towards the 1262.50-1261.50 area on the ES and
11700 area on the Dow cash, and can hold and reverse from
around there, then it could set up a good trade on the long
side.
If the market rallies early instead, the ES needs to break
and hold over the 1276.75-1277.50 initial resistance to get
a move going to test the 11900 area on the Dow cash and
possibly the 1284.50-1285.00 area on the ES. If the market
can push further, then a move towards the 1293.25-1294.00
area on the ES is possible before another good sized selloff
sets up.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1276.75-1277.50
1280.25-1280.75
1284.50-1285.00
1288.50-1288.50
1293.25-1294.00
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1271.50-1270.75
1267.25-1266.50
1262.50-1261.50
1256.00-1255.25
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2227.00-2227.50
2233.50-2234.25
2242.50-2243.50
2248.00-2249.00
2256.50-2258.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2215.50-2214.50
2208.75-2207.75
2196.75-2195.75
2188.00-2186.50
---------------------------
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