TradeStalker's
Support and Resistance Update
5 / 3 / 2011
(Published Since 1996)
...............................................
Dateline: 6:16 pm eastern time, 5/3/2011
*NOTE: I must be away all day on Wednesday and
most of Thursday. Therefore, there will not be any
updates until Friday morning via instant message
after the Employment report. My apologies, I'd
rather be trading, believe me.*
The ES opened at initial support, bounced from 1354.25 to
1356.00, then reversed and dropped to 1352.00. That was over
the key 1351.00-1350.50 zone, and a bounce to 1357.25
stalled/ reversed. After pulling back to 1351.25, a another
bounce to test 1357.00 failed and the market rolled over
shortly after noon. It was trend down from there as the ES
went to a 1345.75 low with about 30 minutes left in stock
trading. The ES reached the 1353.50 level and backed off a
bit into the close.
The market had a back and forth day and closed just under
some resistance on Tuesday. Despite the last hour rally on
Tuesday, the upside still appears to be limited. The
downside should be limited too, as short covering/ buying
came in late Tuesday showing that the bulls have yet to give
up. The last hour mood swing should help keep the market in
a trading range before the Employment data on Friday. If it
cannot, then this market is in for that May correction
again most likely.
On Wednesday look for a higher open to be a gift shorting
opportunity, and then if the initial support areas are
tested/ reversed it could set up a buying opportunity for a
move back to test or break the early highs - if the market
is in good shape. To break down again, the 1350 area would
need to be held under after a break of that area. If the
market dips to the initial support around the 1349.75-
1349.00 area on the ES and the 2384.00-2383.50 area on the
NQ and then turns up, that should get a bounce going IF
there is a low in place. If no quick reversal, then it
breaks a wedge and a test of Tuesday's lows would be in the
cards and must hold there or go to the 1341.00-1340.50 zone
or lower (1337-1335 breakout area next) before a real rally
can begin.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1353.50
1356.50-1357.00
1359.00-1359.50
1362.00-1362.50
1366.50-1367.25
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1349.75-1349.00
1346.50-1345.75
1341.00-1340.50
1337.00-1335.50 *major on ES
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2392.75
2396.75-2397.50
2407.00-2407.75
2410.00-2411.00
2414.50-2415.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2384.00-2383.50
2376.00-2374.50
2270.50-2368.75
---------------------------
REMINDER:
Real Time subscribers can view these updates, and also get
real time instant messages, on the web at this site:
http://www.tradestalker.com/RBIchat.htm
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
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.
*************************************************
No comments:
Post a Comment