TradeStalker's
Support and Resistance Update
4 / 25 / 2011
(Published Since 1996)
...............................................
Dateline: 6:16 pm eastern time, 4/25/2011
A higher open was sold to 1330.25 initial support, then a
bounce to the 1334.00 initial resistance was rejected twice.
The second test set up a 1-2-3 top at resistance, and then
the ES dropped 6.75 points to 1327.75 just after 11 am
eastern time. The market rallied back at a snail's pace to
1332.75, reaching the 1332.50 upside target, then turned
back down to just above 1330 before chopping and churning
into the close.
The market was very quiet and uneventful after the first 2
hours of trading on Monday. After reaching the 1334 level on
the ES, buyers backed off but the 1330 area was held all
afternoon. To get a reversal and put the market under
pressure, the 1326.50-1326.00 area would need to break, or
be tested and then fail to clear the 1330.50 area on a
bounce. Unless that happens, the market should stay away
from trouble and possibly take out that 1333.50-1334.00 zone
and try to get to/ through the 1340 level on the SP500 cash.
If the market gets to that area and then reverses back to
the downside, then another rejection of the February high
could start something going on the downside.
We get the Consumer Confidence release 30 minutes into
trading on Tuesday. Look for early weakness to set up a
trade on the long side, especially if the 1326.50-1326.00
area gets tested and reverses. If that plays out, beware of
another reversal if the upside stalls out around the 1334
area on the ES and/or 2382 area on the NQ. If the market
gets there and shows no sign of turning back down, then a
move to the 1336.00-1336.50 area would be next, and a test
of that area should be rejected if reached. If it is not
rejected, then the move could extend towards the 1339.50-
1340.50 zone on this leg up.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1333.50-1334.00
1336.00-1336.50
1339.50-1340.50
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1330.50-1330.00
1326.50-1326.00
1324.00-1323.50
1320.50-1319.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2381.25-2382.50
2386.50-2387.25
2392.50-2394.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2377.00-2376.50
2372.00-2370.75
2365.50-2363.75
2358.25-2357.50
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Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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Disclaimer
The financial markets are risky. Investing is risky.
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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