Trading Levels & Economic Reports for 10-20-2011
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
In this post:
1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini Mini S&P 500 Futures Chart
1. Market Commentary
Volatility remains high and what I wrote yesterday, still holds:
As far as the daily chart, I am now confused again….I got tempted on the short side and got burnt very quickly today….Once again there is a CASE for both sides, bulls and the bears and the potential for a BIG MOVE EITHER WAY is greater than normal as we are sitting on important price levels in the SP500, which has been the leader for the rest of the markets as of the last few weeks.
One more point that I would like to add that have helped me when I followed and hurt me when I ignored…
When volatility is higher than normal, like we have now, I try to REDUCE my trading size. This allows me to stay in a trade with higher comfort level instead of getting out too soon from winners and too late from losers….The principal is correct regardless of volatility but even more so when markets experience fast and sharp moves.
GOOD TRADING!
2. Support and Resistance Levels
| Contract (Dec. 2011) | SP500 (big & Mini) | Nasdaq100 (big & Mini) | Dow Jones (big & Mini) | Mini Russell |
| Contract Dec. 2011) | SP500 (big & Mini) | Nasdaq100 (big & Mini) | Dow Jones (big & Mini) | Mini Russell |
| Resistance 3 | 1243.17 | 2415.08 | 11707 | 726.77 |
| Resistance 2 | 1234.13 | 2391.67 | 11640 | 718.33 |
| Resistance 1 | 1219.57 | 2352.58 | 11540 | 705.77 |
| Pivot | 1210.53 | 2329.17 | 11473 | 697.33 |
| Support 1 | 1195.97 | 2290.08 | 11373 | 684.77 |
| Support 2 | 1186.93 | 2266.67 | 11306 | 676.33 |
| Support 3 | 1172.37 | 2227.58 | 11206 | 663.77 |
| Contract | Dec. Gold | Dec. Euro | Nov. Crude Oil | Dec. Bonds |
| Resistance 3 | 1677.0 | 1.3980 | 92.31 | 141 13/32 |
| Resistance 2 | 1669.9 | 1.3921 | 91.00 | 140 21/32 |
| Resistance 1 | 1656.6 | 1.3835 | 88.65 | 140 1/32 |
| Pivot | 1649.5 | 1.3776 | 87.34 | 139 9/32 |
| Support 1 | 1636.2 | 1.3690 | 84.99 | 138 21/32 |
| Support 2 | 1629.1 | 1.3631 | 83.68 | 137 29/32 |
| Support 3 | 1615.8 | 1.3545 | 81.33 | 137 9/32 |
3. Daily Mini Mini S&P 500 Futures Chart
As far as the mini SP daily chart below, we are STILL in a WIDE range. 1185.50 ( yesterdays lows) and 1231 (Sunday night high), maybe even bit wider if we look at the FIB levels, 1177 to 1242.
I think that once the market breaks one way or another with follow through volume, we can see a significant move in that direction. With today’s price action, my odds are slightly in favor of a down move but once again I need to see a confirmation by taking out 1185.
Daily chart for your review below:
