TradeStalker's
Support and Resistance Update
5 / 11 / 2011
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 5/11/2011
The ES opened lower on Wednesday and dropped to 1348.25
(1348.75-1348.00) zone, then a bounce to 1351.50 followed.
That was the pivotal support, which turned resistance after
broken, and that set up a drop to next support. The 1345.75
(1346.00-1345.50 support) gave a small bounce, but that fell
shy of the updated 1349.50 level by 1 tick, then broke the
low and accelerated lower. The 1335.50-1334.75 support was
reached and gave a bounce but it failed at 1340.00 new
resistance and fell back again, spilling to 1333.00 a bit
after 2 pm. The ES then bounced to 1338.00 and was sold and
a test of the low was quickly reversed. The ES bounced back
to the 1339.75 level, which was sold, and then dropped to
1335.50. Buying/ short covering started with 30 minutes left
and the ES reached 1340.50 just before the close.
With my 3 Day Thrust and RBI oscillators in sell mode, the
market fell back to planet Earth on Wednesday. Before the
open I mentioned that the TVIX should jump in the morning.
The TVIX opened at 22.26 and rallied to 24.28, just over 9%
on that move, before it pulled back. I also stated that the
market dynamics would change if the initial published
1352.25-1351.50 support zone was broken. That was the high
of the day, and key now if a bounce attempt gets legs.
On Thursday look for early strength to be sold, and then if
a pullback holds the 1335.00-1335.25 area a bounce is
possible. If there is no sign of a bounce, then it's down to
the 1332.50-1331.75 area before a bounce attempt. If they
hold under 1335 on a bounce, then look for a rebound if the
1327.50-1326.75 is reached, and quickly reversed. To avoid
trouble, the 1340 area needs cleared, then held on a dip and
quickly pushed higher. Otherwise, the market is still in
short term trouble.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1340.00-1340.75
1345.75-1346.25
1349.75-1350.50
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1335.25-1335.00
1332.50-1331.75
1327.50-1326.75
1323.50-1322.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2395.50-2397.00
2402.50-2404.00
2408.75-2410.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2384.00-2383.25
2374.50-2373.50
2363.50-2362.50
2356.00-2354.50
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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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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
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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
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
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is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
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