TradeStalker's
Support and Resistance Update
3 / 24 / 2011
(Published Since 1996)
...............................................
Dateline: 6:45 pm eastern time, 3/24/2011
The 7.75 point gap up open on the ES was sold at 1300, and a
sell-off to 1292.50 updated support on the ES and 12100 on
Dow cash followed. That support held, and a trend up move to
the updated 1302-1303 area followed then stalled out. A test
of updated support at 1300.50 held and a pop up to 1304.75
occurred. Another drop held right at 1300 on the ES, and
after a test of the high failed, the pullback that followed
held the 1303 transition level and went to 1306.75 before
pulling back in the last half hour of trading.
On Friday we get GDP before the open, and the Michigan
Sentiment survey release 25 minutes after stocks open. The
Thursday action was a trend up day with a few hiccups but
there was a clear breakout above the 1296 resistance on the
ES on Thursday. Normally a trend day will be followed up by
a day of 2 sided action. Given that most internal gauges are
neutral, that makes it more likely. The thing that is
bothersome about being a buyer up here is the plunge by the
VIX. It closed almost 20% under its 10 day average close. If
it reverses, then I'll get several sell signals. It hasn't
reversed yet.
It looks like the 1303 area on the ES will be key on a
pullback on Friday. As long as that area is held, then no
damage is done and the market can move higher. Still, if
there is a good run-up (and there may be early if after
hours earnings keeps the futures up) and it runs out of
steam and stalls, expect a decent and tradable pullback.
Both sides should be in play, and a move up to round the
1314-1315 area would be a pretty big hurdle to clear. If
they melt-up towards the 1320 area, that would be the max
before a good sized pullback. Next week is the end of the
quarter, and we should get a decent pullback in front of the
"last 2 days of the month, first day of new month" upside
tendency.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1307.50-1308.25
1310.50
1314.50-1315.50
1320.50-1321.50
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1303.25-1302.75
1300.50-1299.50
1296.00
1292.50-1292.00
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2316.50-2318.00
2322.00
2328.50-2329.50
2339.00-2340.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2306.00-2305.00
2298.50-2297.50
2285.00
2273.00-2272.00
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Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
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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