TradeStalker's
Support and Resistance Update
5 / 16 / 2011
(Published Since 1996)
...............................................
Dateline: 7:30 pm eastern time, 5/16/2011
Going into Monday's trading, members were advised to look
for ES to reverse weakness within the first 40 minutes if
the if the 1328.50-1327.50 area was held. The ES gapped down
on the open, then a reversal off 1328.00 about 10 minutes in
(1328.50-1327.50 key support zone) brought in buying and a
rally to/ through the 1338.50-1339.00 resistance occurred on
the way to a 1341.25 high. We switched sides after the 1338
level was broken as the dynamics changed, and a bounce back
to that 1338 level was rejected before the drop to 1329.50
around noon. A bounce to 1335.25 followed, and that
coincided with the 60 period ema on the 5 minute chart and
was rejected. The move up also formed a rising wedge
pattern, and after breaking 1333 the move accelerated down
to test 1328.75 and bounced again. That bounce failed at
1333.25 just after 3pm, then lead by a very weak NQ a drop
to 1324.75 new low on the ES was made with about 10 minutes
left in stock trading. A bounce to 1328.25 at 4pm was
rejected and the ES dropped back to 1325.25 just before
settlement.
We sure had a sentiment shift over the past few trading
days. There hasn't been any capitulation yet, and the trends
and momentum are in favor of the bears short term. The daily
indicators are a day away from getting oversold, possibly 2
more days. In any case, don't expect the bounces to stick
just yet, as now a lot of "bottom pickers" are left trapped
above. On Tuesday expect follow through weakness to be
bought, and then the first decent bounce should set up a
better shorting opportunity. Look for initial resistance at
the 1328.00-1328.50 area (old key support) to be sold if the
market is still very weak. If exceeded, then a bounce
towards the 1332.50-1333.25 area (likely below that) should
be as far as the market gets before another bout of selling.
It will take a move over that 1332.50-1333.25 area to take
some pressure off, and possibly get the bulls interested in
buying a pullback that stalls/ reverses from the 1328 area.
That looks like what it will take to avoid more trouble on
Tuesday. Otherwise, a bounce that stalls out should set up
shorting opportunities as the market moves towards the gap
left on April 20th gap up open.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1328.00-1328.50
1332.50-1333.25
1335.75-1336.25
1338.00-1338.75
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1325.25-1324.75
1321.50-1320.50
1315.00-1314.25
1310.00-1309.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2337.50-2338.00
2344.25-2345.00
2349.75-2350.75
2358.25-2360.50
1315.00-1314.25
1310.00-1309.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2337.50-2338.00
2344.25-2345.00
2349.75-2350.75
2358.25-2360.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2330.00.2329.25
2326.75-2325.50
2317.25-2316.75
2308.50-2307.50
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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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.
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This is not an endorsement or recommendation of the SP500
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