TradeStalker's
Support and Resistance Update
4 / 28 / 2011
(Published Since 1996)
...............................................
Dateline: 6:16 pm eastern time, 4/28/2011
The lower open on Thursday was bought and a move to 1354.00-
1354.50 initial resistance was sold. With double tops in
place, a drop held at 1351.50 on four tests, then got going
again on the upside. The ES reached 1355.25 then stalled out
and fell to 1351.00, which coincided with the 60 ema on 5
minute chart and 12700 on the Dow cash. A bounce to 1354.75
occurred, then another pullback to 1351.00 was reversed and
the ES started a grind higher to test the 1355.25 high. A
small dip held 1353.50 trend support, and then with 30
minutes left in stock trading the high was blasted through
and 1358.00 (1357.75-1358.25 zone) was reached in a flash. A
pullback held above 1355.50 new support and popped to
1358.50 then dropped back to 1354.25 just before settlement.
The rush up to 1358.50 resistance was enough to take out
stops, then promptly was reversed back down to end the day
on Thursday. My short term internal gauges reached very
overbought extremes, and that should keep the market from
further melt-up action on Friday. The sentiment and mood has
been very complacent, so downside could get momentum if good
support areas are broken. A break of the 1354.00-1353.50
initial support should mean that the 1350.25-1349.50 will be
seen, at the least. The ES will need to get over 1358, and
hold that on a dip, in order to avoid a move to that area or
lower.
So, on Friday look for early strength to be sold and if the
1354 area is not defended, a drop must be reversed back up
from around the 1350.25-1349.50 zone or higher. If that
doesn't occur then the 1347.50-1346.75 area is in the cards.
There should be a bounce if that is reached, but if not then
1340.50 is major well below if things turn sour. IF the
initial support holds, one last gasp bounce can occur but
then the 1358 area would be a short if a move there stalls/
reverses with a stop just a bit above.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1357.75-1358.25
1362.00-1362.50
1366.00-1366.50
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1354.00-1353.50
1350.25-1349.50
1347.50-1346.75
1344.50-1344.00
1341.00-1340.25
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2408.75-2410.00
2416.75-2417.50
2422.75-2424.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2398.50-2397.50
2393.50-2392.50
2388.50-2387.25
2377.00-2376.50
2372.00-2370.75
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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