TradeStalker's
Support and Resistance Update
5 / 25 / 2011
(Published Since 1996)
...............................................
Dateline: 7:36 pm eastern time, 5/25/2011
In last night's update, I said to look for early weakness to
be bought and then for the first good bounce to fail. The ES
opened down 4.50 points and filled the gap left at 1309.50,
then traded up from the 1308.75 to 1315.00. That set up a
trade on the short side around 9:50AM as the bounce stalled
and pulled back at 1315.00, right at the 20 EMA on the 5-
minute chart and just under the published 1315.50 resistance
area. The pullback held just above the 1310.25-1309.50 zone
on the pullback, and then the market reversed and traded
higher to 1321.25 just before 12:00PM. That was sold, and
unable to get back over 1320 it lead to a drop to 1316.50
and the market turned back up. Around 3PM the ES took off
higher and reached 1324.50 in about 15 minutes. That was it
for the run-up, and the move gathered steam when 1322.50
wouldn't hold and and stayed trend down to 1316.25 as the
futures settled a bit under fair value on Wednesday.
The ES had a lower low and a higher high than it had on
Tuesday, and closed the day about in the middle of that
range. The short term internal gauges moved out of oversold
territory, so that prop has been removed. The action
continues to be poor, with bounces not able to hold. This
keeps trapping buyers chasing the move up, leaving more
resistance to cut through on bounces. Absent some kind of
spark, the bounces should continue to fail.
Don't expect early strength to hold on Thursday, as it will
take a break/ hold over the initial resistance areas (not a
rejection, which is expected) to dent the late Wednesday
downside momentum. A pop up there should be sold and a drop
that doesn't hold the 1315.50-1315.00 area on the ES opens
the door for a drop to at least the 1312.50 level, maybe
lower. If the market opens lower, then a bounce back is
likely but the initial resistance will still likely be sold.
IF the initial resistance areas are exceeded, then a
pullback should hold the 1316.25 area on a dip to avoid that
deeper pullback that is expected. If the 1320.00-1320.50
area on the ES is exceeded, and can hold on a dip, then move
to test/ break the Wednesday highs should be reversed. If
it's not, things could change short term at least until a
move to 1327-1328 is achieved where there should be strong
resistance.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1320.00-1320.50
1324.00-1324.50
1327.00-1327.75
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1315.50-1315.00
1312.25
1310.75-1310.25
1308.75-1308.00
1306.25-1305.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2314.75-2315.50
2320.75-2321.75
2327.50-2328.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2307.50-2306.50
2304.00
2302.00-2301.50
2297.25-2396.75
2292.50-2292.00
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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This is not an endorsement or recommendation of the SP500
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