TradeStalker's
Support and Resistance Update
4 / 7 / 2011
(Published Since 1996)
...............................................
Dateline: 7:16 pm eastern time, 4/7/2011
NOTE: Due to the kid's spring break, I will not be
doing any intraday updates on Friday. I will send
support/ resistance and a brief comment *if
possible* on Sunday night. If I'm unable to get
that done, then the next update will be on Monday
morning via instant message.
The ES opened higher on Thursday and ran up to 1335.25 (just
under 1335.75 resistance) and that reversed in the first 40
minutes, then the earthquake in Japan hit the tape and the
ES fell to 1322.25. A quick bounce failed at 1330.25, then
dropped back to test the lows. A reversal of 1323.00 was
tepid at first, then got legs when 1326 was cleared and it
kept going until getting back to the 1332.00 resistance
area. That was sold down to the 1325.00 support, and then a
trading range between 1325 and 1328 developed. A break out
of the range on the upside was met with selling when the Dow
cash tested 12400, but that dip held and the market made one
more push higher into the close.
Well, the market finally had a day with poor breadth and it
gave a trip to the bottom of a 6 day trading range on the
SP500 cash and futures. The cash index has found bottom just
above the 1325 level, and top just under the 1340 level. The
rate of change on the upside has gone flat, and it appears
odds of a break lower outweigh the odds of a breakout over
1340 and test of the February highs.
On Friday look for early strength to be sold, and then if a
pullback can hold that 1325.25-1325.00 area on the ES, we
can get another rally attempt going. That area should be
defended if the market is going to stay above the bottom of
this range. If that area is broken, then the double bottom
at 1323 is just below and is the bottom of this range. A
quick reversal back up would be needed there, or else a
break could lead to a move to the 1317.75-1317.25 area on
the ES, and/or the 1321.89-1319.45 gap on the SP500 cash. If
I'm wrong, and the ES is able to break over the 1333 area and
hold that on a dip, then a breakout to the upside occurs and
then the 1342-1343 could be in the cards short term. Don't
hold your breath.
NOTE: Due to the kids spring break, I will not be
doing any intraday updates on Friday. I will send
support/ resistance and a brief comment *if
possible* on Sunday night. If I'm unable to get
that done, then the next update will be on Monday
morning via instant message.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1329.50-1330.50
1332.50-1333.00
1335.25-1335.75
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1325.25-1325.00
1322.25-1322.00
1317.75-1317.25
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2334.00-2334.50
2339.50-2340.50
2347.50-2348.75
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2323.00-2322.25
2312.50-2311.75
2304.25-2303.50
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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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