Morning Call: Market Looks to Hold Support Levels as Futures Lower

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February 22, 2012 11:00am NASDAQ:QQQ NASDAQ:QQQQ

US stock futures are off a bit this morning after some soft economic data out of Europe. A purchasing managers survey in the Euro zone showed an unexpected contraction in the economy in February. Markets typically find sellers at big psychological

levels like Dow 13,000 or S&P 1370. Usually we don’t just bust through them at first attempt, especially after the upside we’ve already seen so far this year. Now we will we watching what levels can hold over the next few sessions. 

Spending some time above recent highs in the S&P of 1353-1355 would be constructive. If they probe below that level, the 10day moving average has been important to watch. It now stands at 1351. Markets have been riding the 10-day MA for multiple weeks, which is a sign of extreme technical strength.

There is a cluster of support around 1342-1344. The last few times we reached new levels we then retraced into a support area like that. The line in the sand for composure/speed to change a bit is if we were to break and close below 1335-1337.

I will stay with some of my swing longs unless the composure changes, but I will be a lot lighter than I’ve been since the December 20th Gap and Go.

Scott Redler Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategiesfor the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader. Scott Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Scott moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, he maintained his status as a top trader in the industry while working closely with all traders in the firm to dramatically increase performance. Scott has participated in more than 30 triathlons and one IronMan triathlon, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business and Bloomberg, and he has been quoted in the Wall Street Journaland Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers. is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time.

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*DISCLOSURES: Scott Redler is long (NYSEArca:SPY), (NYSEArca:OIH), (NASDAQ:QCOM), (NASDAQ:INTC), (NYSEArca:JPM), (NYSEArca:IBM), (NYSEArca:VXX). Long (NASDAQ:AMZN) Puts, short (NASDAQ:QQQ).

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