TradeStalker's
Support and Resistance Update
5 / 23/ 2011
(Published Since 1996)
...............................................
Dateline: 6:46 pm eastern time, 5/23/2011
The ES gapped down over 12 points on Monday, dropped to test
the pre-open low 1312.25 and turned up. A scalp trade on the
long side was setup when the ES reversed the morning low of
1312.25 after opening in the 1315.50-1314.50 zone in the
first 5 minutes of trading and bounced up 1317.50 before
pulling back. For about the next hour and a half, the ES
traded up and down in a 4.50 point range between 1313.5-
1318.00, before breaking out to the downside and drifting to
the daily low of 1310.75 around 12:15 PM. That was just
above the gap fill areas and the market turned back up
quickly from that low. The ES traded back up into the
1315.50-1314.50 zone and stalled for another hour and a half
before breaking out to the upside and putting in the daily
high of 1319.75, just above the listed 1318.50-1319.00 zone.
The 1319.75 was sold and a test of the high that was
rejected around 3:10 PM setup a decent short trade. After
the rejection, the ES traded back down to 1313.75 before
closing the day at 1314.75.
The internal gauges are close to oversold extremes, and at
the point where a decent bounce could come at any time.
However, better to stay with the short side until the market
shows some sign of strength, or a test of lower levels gets
reversed. Also, the SP500 cash and futures both just missed
filling the gap from April 20, and it would be odd to go
this far and not finish that off.
If there is early weakness on Tuesday, and the 1309.50 area
on the ES is tested and reversed, then a decent bounce could
get underway. However, if that area is not held, then a drop
to the 1306.25-1305.50 area should be reversed back up to
avoid trouble. If a break of that zone is not reversed, then
we could see the ES go under 1300 on this leg down.
If the market can rally instead, and both the ES and the NQ
get can over the initial resistance zones and then hold
around those without much of a dip (instead of being
rejected if still a weak market), then a push towards the
1323.75-1324.25 area would be possible before the market
gives a pullback. IF the market gets that far, and the ES
can then hold over 1320 on a dip, then one more push up to
the 1327-1328 area would be possible.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1319.50-1320.50
1323.75-1324.25
1327.25-1328.00
1332.75-1333.50
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1313.50-1313.00
1310.00-1309.50
1306.25-1305.50
1301.00-1300.50
1297.50-1296.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2323.75-2325.00
2334.25-2335.50
2342.75-2344.50
2352.50-2353.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2313.75-2312.75
2305.50-2304.75
2296.50-2294.75
2286.00-2285.00
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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Disclaimer
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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
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