TradeStalker's
Support and Resistance Update
3 / 27 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 3/27/2011
The market got of to a shaky start last week as the ES
failed at the 1296 area and sold off to 1279.25 by Wednesday
morning. The market turned up and took out the 1296 area on
Thursday's gap up open at 1300 on the ES. That 1300 level
was sold on Thursday's open, and then a drop to the 1292.50
level on the ES and 12100 level on the Dow cash was held in
the morning. The market got its footing and the ES got back
over 1300 on Thursday afternoon. Then, on Friday the ES
rallied to the 1314.50-1315.50 resistance zone and failed,
then dropped to the 1308 support area before the close.
The market sentiment has gotten frothy as it approaches the
February highs. The VIX dropped 40% in the last 7 days, and
the Friday action by the VIX gave 3 of 5 possible sell
signals. A reversal by the VIX on Monday would be a heads-up
that sentiment is shifting, and the market would be
vulnerable for decent pullback at the least. Other short
term gauges are slightly overbought, while the intermediate
term indicators have a lot of catching up to do.
On Monday the market will be vulnerable unless there is a
move over the initial resistance zones, and it holds on a
pullback. If that happens in the early going, and the 1313
area is held on a pullback, it could give the market one
more run up towards the 1319.50-1320.50 area on the ES
before there is a decent pullback. On the other side of the
coin, if that 1313 area is not exceeded, and the initial
support is broken through, then a move towards the 1300 area
looks to be in the cards short term. A move back to that
area should be defended unless things are changing on the
bigger picture, so that could be seen as a very good place
for buyers to step to the plate. If not, then the 1296 area
will be key as it was the breakout/ transition zone on the
upside.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1312.50-1313.00 *key
1315.00-1315.50
1319.50-1320.50 *major
1324.25-1325.00
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1308.50-1308.00
1305.25
1300.50-1300.00 *strong
1296.00-1295.50
1292.50-1292.00 *major
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2325.00-2325.50 *key
2329.75-2330.50
2337.50-2338.25 *major
2345.25-2346.25
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2313.75-2312.00
2309.25
2301.00-2300.25 *strong
2292.50-2291.75
2285.50-2284.50 *major
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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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