TradeStalker's
Support and Resistance Update
3 / 22 / 2011
(Published Since 1996)
...............................................
Dateline: 6:19 pm eastern time, 3/22/2011
We came into Tuesday expecting lower prices, and for bounces
to fail, and got just that. The ES popped up to 1294.75 in
the first 10 minutes (1295.50 was initial resistance, just
missed), then dropped to double bottom around initial
support at 1290.50 on ES and 2253.50 on NQ. A bounce stopped
1 tick under updated resistance at 1294.25 and reversed
again. A 6.00 point drop to the 1288.25 level was reached,
and 12000 on the Dow cash held too, and the ES bounced to
1293.00 and reversed again. It set up another shorting
opportunity and the market obliged as the ES fell 4.50
points to 1288.50 then bounced again. That was just 3.25
points, then a drop to 1287.50 followed. A bounce started at
2pm but that failed at 1290.75 and then was sold into the
close.
The market worked off most of the overbought readings from
Monday, except for the Vix dropping a bit more on Tuesday.
At the moment the market looks range bound, with limited
upside unless the ES can get over the initial resistance
areas and hold on Wednesday. Even then, something unexpected
needs to happen to spur another run up towards the 1295.75-
1296.25 area on the ES. Below, the ES still has a gap on the
daily chart at the 1285.00 level. A test of that area, if
held and/or quickly reversed, should give a bounce if the
market is not getting into trouble again.
On Wednesday the upside will be suspect unless the initial
resistance is cleared. If that is not cleared, then odds are
pretty good that we see that 1285-1284 area tested before
any attempt to get turned back around. If that occurs, then
the rebound back up would need to push back up over the
1290.50 area, and stick, to undo the damage that would be
done.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1290.75
1293.25-1293.75 key
1295.75-1296.25
1297.75-1298.50
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1288.00-1287.50
1285.00-1284.50 key
1282.00-1281.50
1276.75-1276.00
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2259.25
2263.50-2264.00 key
2267.50-2268.25
2271.00-2272.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2254.50-2253.75
2250.50-2250.00 key
2244.50-2243.50
2234.50-2233.50
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Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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The foregoing has been prepared solely for informational
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guarantee that future results will be profitable.
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This is not an endorsement or recommendation of the SP500
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