TradeStalker's
Support and Resistance Update
4 / 5 / 2011
(Published Since 1996)
...............................................
Dateline: 6:56 pm eastern time, 4/5/2011
The ES opened down 3.50 points on Tuesday, and the 1325.00-
1324.25 key area was tested twice before the market turned
up. A trend up move held at each updated support area on the
way to a 1234.25 high on the ES and 2340 on the NQ. As noted
via Instant Message just after making its top, the move was
losing momentum on each attempt to move higher, and it set
up a short as the move was reversed when 1332.50 was broken.
That turned into resistance on a bounce as the market then
went into trend down mode. The ES dropped 7.75 points while
the weaker NQ dropped 19.75 points and ended the day just
above the lows.
Once again the 1325 area held and gave a good rally attempt.
However, ALSO once again, the rally was aborted as buyers
pull bids and longs take profits before it's too late and
they are forced out. The ES ended the day just a bit over
the key support. It doesn't look like the ideal set-up to be
a buyer, as the reward/ risk on the long side is a bit high
due to how complacent participants are currently.
That said, the market is still range bound and the upside
appears to be limited. If there is a lower open, a reversal
back up should occur if the initial support areas are held.
If that occurs it sets up another trade on the long side as
there should be shorts covering on early weakness. On the
other side of the coin, if there is a move up on the open
and the initial resistance is tested/ rejected, it should
set up a better shorting opportunity. The bounces are not
able to stick, so favor the short side as a breakdown could
be a bit nasty short term.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1330.50-1331.00
1333.75-1334.25 major
1337.75-1338.50
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1325.00-1324.25
1320.00-1319.50
1317.75
1315.50-1314.75
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2327.50-2329.00
2335.00-2335.50
2340.00-2342.00 major
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2320.50-2319.50
2313.00-2312.50
2308.75
2204.00-2202.00
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Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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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.
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