TradeStalker's
Support and Resistance Update
4 / 10 / 2011
(Published Since 1996)
...............................................
Dateline: 5:34 pm eastern time, 4/10/2011
On Friday the ES opened up over 6 points and tested the top
of the 6 day range at the key 1335.75-1336.25 resistance.
Once again that offered a good shorting opportunity, and
after a drop of 8.50 points to 1327.25 followed. The ES
bounced to dynamic resistance at 1330.50, and not liking it
up there the ES fell 12 more points to 1318.50 with an hour
to go in the week's trading. That was just over the gap fill
area at the 1317.75 level, and buying/ short covering took
the market back to resistance areas just before the close.
The ES had an outside day on Friday, rolling over from the
top of what was a 6 day trading range on the open, and then
rolling over even sharper when the ES failed to stay over
1330 after a small bounce. The low at 1318.50 was just above
the gap fill area, and that is the key area on a test of the
Friday lows.
The intermediate term gauges have rolled over, and the
string of 5 consecutive closes between 1332.41 and 1335.54
on the SP500 cash was broken on the downside on Friday. The
only positives to come from the action on Friday was the
rebound in the last hour (that started from just above a key
support area), and the short term internal indicators are
modestly oversold.
For now stay with shorting bounces as long as the initial
resistance is not exceeded/ held on a dip on Monday. If it
is cleared, then a move up towards the 1330.50-1331.00 area
should be sold if the market is still weak. If the initial
resistance areas are rejected, and the ES breaks the 1322
area, then a break of a rising wedge will occur and should
set up a drop to test the support around the Friday lows at
the 1318.50-1317.75 area on the ES. A test of the 1317.75
area should be key, and needs to be defended and give a 1-2-
3 pattern or double bottom reversal to avoid trouble.
Otherwise another push lower occurs and if there is no sign
of a reversal from the 1314 area, then things can begin to
unravel.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1325.50-1326.50 {12400 on Dow cash}
1330.50-1331.00
1335.75-1336.25
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1318.50-1317.75
1315.50-1314.75
1311.25-1310.50
1308.50-1307.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2322.75-2324.00
2332.75-2334.00
2342.75-2344.25
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2304.75-2302.50
2298.50-2297.50
2291.25-2290.50
2284.00-2282.50
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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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