TradeStalker's
Support and Resistance Update
5 / 8 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 5/8/2011
Last week started with a higher open on the news that bin
Laden was killed. The market euphoria didn't last, as the
technical condition changed after the first sizable pullback
in 2 weeks occurred. By Thursday afternoon the ES reached
1325.25, which was 42 ES points off of Monday's high. The
market got oversold and rallied early on Friday, but that
failed just under 1352 on the EA before noon and the move
reversed. A 20 point drop to 1331.75 occurred before a
decent bounce, but that failed at the updated 1339.50-
1340.50 zone and fell 5.75 points into settlement.
The oversold status was pretty much erased on Friday, except
for the Vix which gave a couple of buy signals. At this
juncture it looks like we can expect the volatility to
continue. The bounces are not able to stick, so any trades
on the long side are "hit and run" trades. The short side
should still offer better opportunities until things change.
To get out of trouble for a bit, the initial resistance
areas need to be cleared and then held as support on a dip.
Lower prices are in the cards unless that happens. And
although they can catch a bid from lower prices, clearing
that initial resistance and holding, not reversing back
down, is key to take some pressure off.
On Monday look for early weakness to set up a reversal back
up in the first 20-40 minutes. If there is a higher open
instead, and the initial resistance is rejected, then that
should also reverse in the first 40 minutes. If the bounces
don't stick and the 1332.50-1331.75 area on the ES is
reached and not reversed with good buying, then a move
towards the 1323.50 level is likely yet on this leg down.
There is a gap on the daily chart (regular trading hours)
from big up open on 4/20 between that 1323.50 level and
1309.50, which was the day session high on 4/19. If there is
a bigger move lower still coming, then a drop back to fill
that gap would be key to hold or the market's bigger picture
trends change.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1339.50-1340.25
1343.50-1344.25
1347.75-2348.25
1351.75-1352.50
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1332.50-1331.75
1327.50-1326.75
1323.50-1322.50
1319.50-1318.50
1310.00-1309.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2385.50-2386.50
2391.75-2393.25
2398.50-2399.25
2409.50-2410.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2368.00-2366.50
2363.50-2362.50
2356.00-2354.50
2348.50-2347.50
Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!
Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), and (DOG)
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