Mark Shore: S&P Emini Futures Update

In the recent move, the S&P emini futures (basis March) bottomed at 1040.75 on 2/5/10. On 2/11/10 we received a buy signal and are still holding the buy signal. Since 2/18/10 the market hit a major resistance of 1100 to 1108 and could not close above 1106 until 3/1/10 and reached a high of 1125 on 3/3/10.

The question: Has the previous resistance level now become the new support level? The markets are waiting for today's initial job claims and the Feb Unemployment Rate to be released tomorrow.

If the market does hold this area the next resistance level is 1122 to 1124. The next resistance level after that is 1127 to 1129. Our next goal would be 1145 to 1168. This would test the highs set on 1/19/10. If the market continues on its next leg upward, 1220 should be a very major area or resistance.

Support can be found at 1117 to 1114. If taken out, the next support level would be 1109 to 1104. If 1101 is taken out, the market could see a correction.