TradeStalker's
Support and Resistance Update
4 / 12 / 2011
(Published Since 1996)
...............................................
Dateline: 7:50 pm eastern time, 4/12/2011
We had some good set-ups in a two-sided day on Tuesday. The
gap down open reversed up from the 1311.25-1310.50 support
zone on the ES, then the 1315.50 support turned into
resistance on the bounce (proof of a break-away gap), and
the ES dropped in trend down fashion to 1305.25 by 11 am. A
choppy move higher cleared/ held 1310.25 and pushed to
1314.25 on less momentum. That was reversed, and after
staying under 1312 it set up a short and a drop to 1307.25
followed. A bounce back to 1311.25 sold and the ES drifted
lower to 1307.50 just before settlement time.
On Wednesday we get Retail Sales before the open, then at 2
pm we get the Fed's Beige Book release. After spending the
better part of 2 weeks spinning its wheels, the market has
broken down. Pretty soon a decent rally will occur from this
short term oversold condition. Such a move will only set the
stage for another good sized drop however the way the market
has acted this and last week.
If there is early weakness, not more than a 4 point gap down
open, then a snap-back rally should occur so a trade on the
long side should setup early. If that plays out, don't
overstay your welcome as the trend and momentum are still in
the bear's favor. If the ES gets to the 1311.25-1311.75 zone
and stalls out, then another push lower will be in the
cards. However, if a move that holds that zone as support
after breaking over it, then we could get a run up towards
the 1314 late afternoon high area before buyers back off for
fear of being caught near a high. If there is a run up that
cuts right through that area too, then a test of the
1317.00-1317.75 former key support could occur before the
market starts to pull back again. If the ES is falls though
that 1307.50 area, and a bounce then fails at/ under 1307.50
(instead of pushing higher towards 1311.25-1311.75), then
one move push lower towards the 1300 area could occur before
the market reverses back to the upside.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1311.25-1311.75
1314.50-1315.25
1317.00-1317.75
June2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1307.25
1305.25-1304.50
1300.50-1300.00
1297.25-1296.50
1292.00-1290.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2295.00-2295.50
2302.50-2204.00
2308.50-2309.25
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2290.25
2287.50-2286.50
2282.00-2280.50
2274.25-2273.50
2265.75-2263.75
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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