TradeStalker's
Support and Resistance Update
5 / 26 / 2011
(Published Since 1996)
...............................................
Dateline: 7:26 pm eastern time, 5/26/2011
The ES opened at the 1315.50-1315.00 initial support and
bounced 4.50 points to 1319.25 (just under key 1320 area)
and then dropped to the 1312.50 support. A bounce to to
1317.50, (60EMA on 5 min chart) failed, and made a wedge
pattern formed in the process. That was broken and a drop
back to 1312.50 followed. Buyers stepped in and a bounce
took out 1315.50 and continued to grind higher to test the
1324.00-1324.50 resistance zone. A rejection of this area
set up a scalp short, but 1322.50 held on the dip and then
another push higher took the ES to the 1327.00-1327.75 zone
before backing off. A dip held at 1323.50 and bounced back
to 1327.00 again, then a another drop reached 1323.25 around
the 4 PM close for stocks. Buying/ short covering came in
and 1327.00 was reached again just before settling.
The futures finally showed the ability to hold gains for a
switch on Thursday. The ES settled about 3 points above fair
value, so they need to hold the initial support on a
pullback or the move will begin to roll over. That also
coincides with the 60 period EMA on the 5 minute chart which
was a transition area on Thursday. On the top side, the
1327.00-1327.75 resistance on the ES was rejected twice late
on Thursday, so the end of day range should be important.
The initial support area held twice on dips also.
The daily internal gauges that were a bit oversold 2 days
ago are just 1 more up day away from getting overbought, so
I'm not expecting this to go too far before getting into
trouble again. On Friday morning I have no interest in
chasing an early rally, especially with the futures settling
well over fair value. We also get the Michigan Sentiment at
9:55 AM and then Pending Home Sales at 10:00 AM. If there is
early strength, it will likely be a gift shorting
opportunity for a test of the initial support areas. If
those areas are held again on a pullback, then the market
could get legs and run up and take out the initial
resistance and head towards the next resistance zones.
However, if the initial support zones are not held, then the
move is getting turned back down again and bounces should
then fail.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1327.50-1328.00
1330.50-1331.00
1332.75-1333.50
1336.50-1337.25
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1323.50-1323.00
1318.00-1317.50
1313.00-1312.50
1310.00-1309.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2328.50-2329.00
2331.50-2332.00
2337.50-2338.50
2346.50-2348.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2323.25-2322.50
2314.00-2312.50
2302.50-2301.75
2296.50-2294.75
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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