TradeStalker's
Support and Resistance Update
5 / 2 / 2011
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 5/2/2011
The news that bin Laden was killed spiked the ES to the 1373
resistance on Sunday night, and it was downhill from there.
The day session started with a pop up to the 1366.00-1366.50
resistance, then promptly reversed and dropped to 1361.75. A
bounce to a token higher high was reversed at 1367.25, and
after a dip, a pop up to 1367.00 was reversed to make a 1-2-
3 top. The break of 1365.75 triggered stops/ selling and a
drop to 1356.75 followed. It coincided with 12800 on the Dow
cash and 2393.50 support on the NQ and then a bounce got in
gear. However, it failed at the 1362 level (just under
updated 1362.50 level) and a drop to 1355.50-1355.00 support
was met (1354.75 low). With just under 30 minutes left, a
bounce brought the ES back to 1358.25 and settled just under
that.
The upside should certainly be limited now that it showed
it's not a one-way street at these levels. There are buyers
trapped above, and profit taking that was missed on Monday
should occur on another decent move higher. The late
reversal off of the 1355 area on the ES saved the market
from hammering in a top. If that 1355 area is defended on a
pullback on Tuesday, then the market will avoid trouble and
have a chance to test the 1362.00-1362.50 area again before
buyers back off. If that 1355 area is not defended on a
test, then the 1351.00-1350.50 area could be a magnet before
there is a turn back to the upside.
On Tuesday expect early strength to be sold, especially if
there is a rejection of the initial resistance areas. If
that occurs, or that area is poked over and reversed, then a
test of the Monday lows is still likely. If the market gets
back there and firms up, or quickly reverses, then it sets
up a trade on the long side. However, if those initial
support areas show no signs of being bought, then we will
need a good reversal up from the 1351.00-1350.50 area to
avoid trouble on Tuesday.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1359.00-1359.50
1362.00-1362.50
1366.50-1367.25
1370.00
1372.00-1373.00
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1355.00-1354.50
1351.00-1350.50
1347.75-1346.75
1341.00-1340.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2407.00-2407.75
2410.00-2411.00
2414.50-2415.50
2418.50
2422.75-2424.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2394.00-2393.00
2388.50-2387.25
2381.75-2380.50
2270.50-2368.75
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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permission.
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PO Box 9783, Ft Wayne, IN, 46899
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The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
guarantee that future results will be profitable.
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This is not an endorsement or recommendation of the SP500
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