TradeStalker's
Support and Resistance Update
4 / 18 / 2011
(Published Since 1996)
...............................................
Dateline: 7:01 pm eastern time, 4/18/2011
The ES gapped down 17.50 points on Monday's open and fell to
1290.25 before turning back up. After getting to 1296.75 the
ES chopped between that level on top and 1293.00 on the
bottom until finally breaking out. The 1298.25 level was
reached but then the 1294.00 new support held and another
run up took the ES to 1302.25. That was sold, but then the
key 1298 area held on a pullback and the ES pushed up to
1303.75 before pulling back to 1299 before the close.
The market made a really nice comeback on Monday, but
another "V" bottom is unlikely. Lately the market has been
coming back after getting knocked down, but the complacency
could end up leading to a day where the market goes trend
down without the "normal" rally back.
At the close the short term indicators are giving both buy
and sell signals. The Closing Trin above 1.10 for 4 straight
days is normally bullish short term. However, the Vix
reversal from that new 52 week low last Friday gave a couple
of Vix sell signals. This mixed bag usually means there is 2
sided action ahead.
On Tuesday the upside should be limited, but as long as the
ES holds the 1298 area then no damage done. However, if that
area is broken, then a bigger drop will be underway and the
1293.00-1292.50 area could be in the cards again. A move
back down there will need to get turned back up quickly or
it will be digging another hole that will be hard to get out
of short term.
On the upside, should the ES pop up to test the initial
resistance in the first 20-40 minutes, that should be sold
into so early strength sets up a shorting opportunity. If
the 1298 area holds, and then the initial resistance is cut
through without a sign of reversing, then a move towards the
1309.50-1310.25 zone wouldn't be impossible. However, that
appears to be a long shot. But, if that area is somehow
reached on Tuesday it will sold if this action is going to
be two-sided at best.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1303.75-1304.50
1309.50-1310.25
1314.40-1315.50
1319.50-1320.50
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1298.50-1298.00
1293.00-1292.50
1290.25-1289.75
1288.00-1287.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2292.50-2293.00
2299.25-2300.50
2309.00-2311.00
2315.00-2316.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2276.50-2275.75
2261.00-2259.75
2252.00-2250.50
2246.00-2244.75
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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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This is not an endorsement or recommendation of the SP500
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