TradeStalker's
Support and Resistance Update
5 / 1 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 5/1/2011
The ES opened higher on Friday and reached 1358.75 (1258.00-
1258.50 resistance) about 15 minutes in, then a drop to
1355.25 stalled out. That was 1 tick above the Thursday
close, then the bulls took control and a bounce back to
1358.25 followed. The ES hesitated there, but then broke
1358 and held it on a dip. That brought in more buying up to
1361.00, then the ES dropped to 1357.50 while the Dow cash
held around 12800 with just under 30 minutes left in stock
trading. The ES got back over 1358.50 and moved back to
1360.25 by the 4 pm close for stocks (while the NQ sold off
to 2402, odd!). Then, when stocks closed, the ES went on a
run up to 1363.75 just before settlement.
Since the April 18th, the market averages have closed higher
on 7 of the last 8 days. On a close to close basis the
market has gained 608.95 points on the Dow cash, 58.47
points on the SP500 cash, and 111.74 points on the Nasdaq
100 cash. The 4 pm run-up on Friday by the ES didn't have
the backing of the NQ. Still, the market reversed up from
what appears to be key areas now around 1358 on the ES and
12800 area on the Dow cash. The settlement price at 1359.75
on the ES and 2400.75 on the NQ was just the "end of month
settlement at fair value" if you are wondering, something
that should be done away with IMHO.
The daily internal gauges are somewhat overbought, but the
trends and momentum are both in favor of the bulls unless/
until those areas are broken. The last leg up was 78.66
points on the SP500 cash in 15 trading days. An equal move
would get the SP500 cash to 1383.80 by May 10th at the
latest. That appears to me the maximum for this rally leg. A
close back under the 1358 area should nullify that however.
On Monday look for early strength to be sold in the first 40
minutes at the latest. If that plays out, a pullback of
about 3-4 points on the ES should hold to keep the upside
momentum. If that occurs, another push higher should coming
and take out the early high. If that does not occur, then a
test of the 1358 area needs to be quickly reversed or else
things could be changing.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1364.00
1366.00-1366.50
1368.25-1368.75
1372.00-1373.00
1384-1385 *major if melt-up
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1359.50-1358.50 [12800 Dow cash]
1355.50-1355.00
1350.25-1349.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2409.75
2412.50-2413.00
2417.50-2418.50
2422.75-2424.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2402.00-2400.50 *key
2394.50-2393.50
2388.50-2387.25
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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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
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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
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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
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is substantial. You can lose more than your original
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