TradeStalker's
Support and Resistance Update
4 / 17 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 4/17/2011
Last week the market broke the bottom of a 6 day range and
was sold off hard into mid week. The short term indicators
got very oversold, and by Thursday morning the ES had
dropped 37.50 points from the previous week's high and got
turned back up from just above the 1297.50 support. That
turned into a good low, as the market chopped higher into
Thursday's close.
On Friday, the pop open was sold at the 1313.50-1314.25
resistance and a drop to the key 1309.25-1308.50 zone
followed. The Nasdaq was a different story early, as it fell
much harder. However, bounce from the key early support at
1309.50 got going and was trend up until it stopped just
under the 1317.50 big area, and then a drop to 1310.50
followed. It looked for awhile that the high for the day was
in place, but the ES held over 1316.50 and kept going until
1319.25 was reached. A drop to the 1314.50 support area was
reversed in the last 15 minutes of stock trading and rallied
to 1319.25 just before settlement.
The short term indicators are no longer in oversold
territory, so that prop has been removed short term. The
only indicator that is at a bit of an extreme is the VIX. It
reached a new 52 week low, and the SPX/VIX ratio is higher
than at the February top. However, just one of a possible 5
VIX sell signals was given on Friday. A reversal back up
above 15.98 would be needed to give more than just one sell
signal.
The ES is in a good uptrend, and has had a good bid on dips
of 4.50-6.00 points (maximum) on the ES on the way up. The
1314.25 area on the ES and the 2300 area on the NQ will need
to hold on the next dip, or the pattern
next bounce would then be set up to fail at a lower high. If
that does occur, then expect resistance around the 1316.50-
1317.00 area on a bounce and a move back towards the next
support at the 1310.25-1309.50 area should be in the cards.
However, as long as the 1315.00-1314.25 area is held on a
dip, then the trends stay up and a test of the 1320.50-
1321.50 area is possible before buyers begin to back off and
wait for a bigger pullback to see how things act. A failure
there would set up a shorting opportunity. If that zone is
cut right through, then the 1324.75-1325.50 area could be
seen before a decent sized pullback gets in gear.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1320.50-1321.50 *key early
1324.75-1325.50 [12400 Dow cash] *strong
1328.00-1328.50
1334.00-1336.00
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1315.00-1314.25 *key
1310.25-1309.50
1306.00-1305.50
1302.25-1301.75
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2312.50-2314.00 *key early
2318.50-2320.00 *strong
2328.75-2329.50
2339.50-2342.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2301.00-2300.00 *key
2295.00-2294.25
2290.75-2290.00
2285.50-2284.50
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Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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Disclaimer
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Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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