TradeStalker's
Support and Resistance Update
4 / 11 / 2011
(Published Since 1996)
...............................................
Dateline: 6:29 pm eastern time, 4/11/2011
The ES held 1325.50 on the first dip on Monday, and then a
move towards the 1330.50-1331.00 resistance (1330.25 high)
was reversed about 25 minutes into trading and a drop to
1324.50 followed. A reversal back up to test 1328.50
resistance (reversed from 1 tick over that 1328.50
resistance) then as the Dow rolled over the ES followed and
fell to 1320.50. The ES made a little double bottom there
and bounced to 1324, but that stalled/ reversed and gave us
a drop to test the 1318.50-1317.75 zone. A reversal off
1317.00 occurred with an hour left and a bounce reached the
1320.75 break-down area just before the close.
The bigger picture internal gauges are rolling over pretty
hard, however several short term indicators are oversold.
The 3 day thrust is at -.56 and the RBI oscillator reached
an oversold condition. However, the way the market is
acting, it will take more than being oversold to get out of
trouble short term. The last hour bounce formed a rising
wedge pattern, so if the market opens higher and rejects the
initial resistance areas on Tuesday morning, then that
should be a gift shorting opportunity as a drop to test the
Monday lows would be in the cards early on. How the market
handles that test of the lows should be telling. If initial
support is not defended, then bounces are still shorting
opportunities with 1315.50-1314.75 being a target (1319.56
on SP500 cash) and the 1311.25-1310.50 a possibility before
a decent bounce occurs.
However, if there is a decent reversal from that 1317 area
on the ES, then a bounce should still fail near 1321 area.
Sentiment is way too complacent after 3 down days in a row.
The VIX dropped more than 7% as the market moved lower,
which is NOT what you want to see in a downtrend if you are
bullish. The VIX should jump if there is much more downside,
and the VIXY ETF should make a nice move if the market
begins to take a drubbing. The only way the market avoids
trouble on Tuesday is if the 1324.00-1324.50 area on the ES
is cleared, and then can stay there by holding on a
pullback. Don't hold your breath.
*I'll be away on Tuesday from 12:30 pm to near
2:30 pm, not able to update then. My apologies*
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1320.50-1321.00
1324.00-1324.50
1330.00-1330.50
1335.75-1336.25
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1317.50-1317.00
1315.50-1314.75
1311.25-1310.50
1308.50-1307.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2312.50-2313.00
2321.75-2322.50
2330.75-2332.00
2342.75-2344.25
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2302.50-2301.50
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.
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Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
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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
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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
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