TradeStalker's
Support and Resistance Update
5 / 15 / 2011
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 5/15/2011
The market rallied early last week, but on Wednesday the
dynamics changed early in the day and the bears took
control. After falling from 1356.50 on Wednesday morning,
the ES fell to 1328.75 on Thursday morning and then put
together a decent rally. That move stalled out at the
breakdown area, and the pop up open on Friday morning was
sold at the 1348.50 level and the action turned ugly again.
An 18.50 point drop to 1330.50 occurred a bit before 12:30
pm, then a reflex rally was sold once the momentum died at
the 1338.50 level. That level was tested twice, then with 90
minutes left in stock trading a drop back to 1333.00
followed while the NQ tanked to 2369.00 at the close.
The indicators have been doing a good job getting the
overbought and oversold areas. At Tuesday's close both the 3
day thrust and RBI oscillator were both in sell territory,
and that combo gave good odds for lower prices. At the
moment most indicators are neutral. The only thing can is
considered as bullish is the 3 days in a row with a closing
Trin above 1.20, and 5 days in a row closing above 1.00.
Under normal conditions, this is considered short term
bullish.
The price action leaves a lot to be desired. The SP500 cash
and futures have been in a range since the 42 point drop off
the May 2nd high by the ES. If the market cannot stay over
the 1328 area listed all week, then a slide towards the
1315.50-1314.50 could occur over the next few days before a
good rally can get underway again. For now the market
remains vulnerable unless the initial resistance is
exceeded, then can hold on a dip.
So, on Monday look for early weakness to be reversed in the
first 40 minutes at the latest if the 1328.50-1327.50 area
is held. If that occurs, don't overstay your welcome because
a bounce should fail. On the other side of the coin, if
there is early strength, that should set up a better
shorting opportunity if the move stalls/ reverses around the
1338 area. That is a 10 point range that needs held on a
breakout to either either side. If the 1328.50-1327.50 area
breaks, and not reversed right back up, then there is still
a gap on the daily chart between 1323.50 and 1309.50 from
the April 20th gap up open. A drop to the 1315.50-1314.50
area, if seen this week, would be an equal move down and
probe that gap, and likely be a key area to reverse back up
from if that is reached.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1336.00
1338.50-1339.00 *key
1342.75-1343.00
1347.75-1348.75 *short term major
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1333.00-1332.50
1328.50-1327.50 *key
1325.50-1325.00
1321.50-1320.50
1315.50-1314.50 *major
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2375.25
2383.50-2385.00 *key
2389.75-2391.25
2397.00-2397.75 *short term major
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2368.50-2367.50
2360.50-2358.75 *key
2354.25-2352.75
2344.00-2342.50
2336.50-2335.50 *major
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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.
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