TradeStalker's
Support and Resistance Update
5 / 17 / 2011
(Published Since 1996)
...............................................
Dateline: 8:03 pm eastern time, 5/17/2011
Last night I stated:
"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."
The ES gapped down at the open and reversed at 1320.00, just
below the published 1321.50-1320.50 zone. It then traded up
to the 1328.00-1328.50 zone around 10:30AM before sharply
reversing and putting in a morning low of 1318.25 around
11:30AM. After putting in the low, the ES bounced to 1323.75
before quickly pulling back, and then trading back up to
1327.50 around 3PM. After a final pullback to the 1323.75
updated support held, the ES got back to 1327.25 but refused
to break out and settled at 1325.50.
The daily internal gauges are oversold, and the market
changed its character a bit after noon on Tuesday. For now
it looks like a short term low could be in at the 1316 area
on the ES and the 2318.25 area on the NQ. Both reversed from
just over support zones and the market held late day for a
switch. However, with the damage done recently, the upside
shouldn't be an easy ride. Some spurts higher, then decent
pullbacks, are likely on a move higher. If a pullback breaks
the initial support areas, an instant turn back up will be
needed to keep the market away from trouble on Wednesday. If
the initial support is broken and not quickly reversed, then
a move back to the next support areas could in the cards
before buyers come back to move things back up.
NOTE: I will be away on Wednesday until the late afternoon.
I'll do my best to send an update on Wednesday night, but
need to see how things turn out. I will update on Thursday
morning via instant message if not able to send a nightly
update. My apologies, hopefully things get back to more
normal next week.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1327.50-1328.50
1332.50-1333.25
1335.75-1336.25
1338.00-1338.75
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1323.75-1323.25
1320.75-1320.00
1315.50-1314.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2342.75-2344.00
2349.75-2350.75
2357.25-2358.50
2362.25-2364.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2334.00-2331.75
2327.00-2328.00
12308.50-2307.50
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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The foregoing has been prepared solely for informational
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guarantee that future results will be profitable.
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