TradeStalker's
Support and Resistance Update
5 / 10 / 2011
(Published Since 1996)
...............................................
Dateline: 7:04 pm eastern time, 5/10/2011
At the open, the ES gapped up over 4 points higher from
Monday's close. During the first few minutes of trading, the
initial 1346.75 resistance area was broken and held after a
test of yesterday's double top highs. From there, the ES
traded up to break and hold the next resistance area at
1347.75-1348.25. After this, the market trended up to the
1351.75-1352.50 resistance zone, which it rejected several
times shortly before 10:30AM. This move resulted in morning
high of 1351.75. After 2.25 point pullback, the ES attempted
to to test the 1351.75 high on a bounce but failed at
1351.75. After stalling for about 15 minutes, it reversed
back down to the 1347.75-1348.25 area around 11:30AM, which
turned into new support. From about 11:30am until just after
2:00PM, the ES traded in a dull 3-point range between 1348-
1351. Around 2:15PM the range was broken on a bounce to
1351.50, then that was followed by a pullback to 1349.25.
After that, the ES bounced back to take out the 1351.5 area
and broke to the upside on a strong bullish move around
2:40PM. This took the ES to a new high for the day at
1356.50 about, 1 point under the next resistance zone. After
that, the ES sold off during the last 45 minutes of trading
and closed at the 1353.75 area.
The three day rally has put the short term internal gauges
into extreme overbought territory. My RBI Oscillator is in
sell territory, and my 3 Day Thrust Oscillator reached +.72
at Wednesday's close. The volume has been very light for 2
days running now, and complacency is returning. The VIX
dropped more than 7%, and the buy signals from a few days
ago have been relieved.
Trends and momentum are both up, so a two-sided day is
likely on Wednesday. The key area to hold on a pullback is
the 1352.25-1351.50 zone on the ES. If broken, the dynamics
change and bounces should fail. If held, then no price
damage is done and the bulls are still in charge. The
1357.75-1358.50 area will be strong resistance and should be
rejected the first attempt. If that area is pushed through
instead, and not quickly reversed, then a test of the
1361.50-1363.00 area is likely before the market backs off.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1355.50
1357.75-1358.50
1361.50-1363.00
1366.20-1367.25
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1352.25-1351.50 key
1348.75-1348.00 strong
1346.00-1345.50
1343.00-1342.25
1340.50-1340.00 major
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2411.75
2414.25-2415.00
2422.50-2424.00
2430.50-2432.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2406.25-2404.75 key
2398.25-2397.50 strong
2394.75-2394.00
2389.75-2388.75 minor
2382.75-2381.75 key
---------------------------
REMINDER:
Real Time subscribers can view these updates, and also get
real time instant messages, on the web at this site:
http://www.tradestalker.com/RBIchat.htm
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
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.
*************************************************
No comments:
Post a Comment