TradeStalker's
Support and Resistance Update
5 / 22 / 2011
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 5/22/2011
We had a good week last week, as the market had reactions at
both support and resistance zones in volatile action. On
Thursday night I stated that if the ES did not stay above
the published initial support zone of 1340.75-1340.25 on
Friday morning, the market characteristics were changing and
the published 1331.50-1330.50 support zone could be seen on
Friday. That area was rejected just before stocks opened,
then the market was sold hard after about 5 minutes and
dropped to 1330.50 before a bounce occurred. That failed and
the last listed support at the 1328.50-1327.50 zone on the
ES was reached, and then a bounce occurred. That got legs
but the move failed at the 1340.25 level on the ES and
pulled back. A failure at 1338.25 occurred and then 1336
broke and that started a drop that took the market down to
new daily lows just before the close.
The market is still acting poorly, despite the intraday
bounces. The market got oversold and bounced from 1316.00 on
the ES, but at the top of the range the sentiment became too
frothy, and again the 1340 area was unable to hold. A
rolling top is in place on the daily charts, and a close
over 1346 on the SP500 Cash will be needed to break this
bearish pattern.
On Monday look for early weakness to be bought, as a short
covering bounce should occur unless the market is in more
serious trouble. If that pays out, expect the move to fizzle
out and reverse if the initial resistance is tested. If the
market is still weak, then a bounce shouldn't stick and the
downside should get momentum if the 1330 area is then cut
back through on a drop. If there is a drop back to the
1319.00-1318.50 area, and the move reverses back up from
there, then a decent sized bounce could get in gear. If that
area is reached, and shows no sign of a reversal, then the
1315.50-1314.50 area is a major area on Monday. A rally
needs to start from there, or else the 1309.50 gap could be
filled before a good rally gets started.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1332.75-1333.50 *key early
1335.75-1336.25
1338.25
1340.50-1341.25 *major Monday
1344.50-1345.50
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1326.50-1325.50 *key early
1322.25-1321.75
1319.00-1318.50 *strong
1315.50-1314.50 *major Monday
1310.25-1309.50 *gap fill area
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2352.50-2353.50 *key early
2357.25-2358.00
2363.25
2368.50-2369.25 *major Monday
2373.50-2374.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2342.00-2341.25 *key early
2336.25-2335.25
2328.25-2327.50 *strong
2318.25-2317.50 *major Monday
2310.25-2308.75 *gap fill area
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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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
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
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is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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