TradeStalker's
Support and Resistance Update
5 / 31 / 2011
(Published Since 1996)
...............................................
Dateline: 7:10 pm eastern time, 5/31/2011
The ES gapped up over 12 points to open at 1342.50, which
was in the middle of the published 1342.25-1343.00
resistance zone. Since the market was overbought heading
into the trading day, this presented a good shorting
opportunity, especially since this area was a high that was
rejected in pre-market activity. After the open, the
1342.25-1343.00 zone was sold and the ES traded trend down
to the morning low 1335.75 just after 10:30 AM. After putting
in the morning low, the ES stalled and then traded in a
range between 1335.75 and 1338.25 until around noon, then
broke out to the downside and put in the daily low of
1333.25 just after 12:30 PM. After putting in the low, the ES
traded up to 1339 by 2:15 PM, breaking symmetry and putting
in the best bounce of the day. After a pullback to 1336.75
held support levels, the ES continued to move up and began a
very strong breakout to the upside around 3:45 PM. The
breakout resulted in the ES trading up to a new daily high
of 1345.75 shortly before the close, then pulled back to
settle at 1344.50.
At Tuesday's lows the SP and Dow cash both filled the gaps
on the daily charts (barely) while the Nasdaq stayed well
above its Friday high. In a way that is a bullish sign,
with Tech leading the move higher. On the flip side, that
will need to be filled in the not too distant future.
The daily indicators are still at overbought extremes. The
late run up should have trouble holding, and a decent
pullback should occur before the market tries to get back
into rally mode. That should start if/ when there is a
pullback of 2.25 points or more on the ES.
On Wednesday a higher open should set up a good shorting
opportunity if reversed in the first 20-30 minutes of
trading. If that plays out, then a drop to the 1341.00-
1340.50 area on the ES would need to hold to keep the
uptrend in gear. If that area is not able to show signs of a
turn, then a test of the afternoon low areas at the 1337.50-
1336.75 zone on the ES and the 2357.50-2357.00 area on the
NQ are both key support areas now. That is where the market
made a transition to the upside on Tuesday afternoon and
should be held if the market is going to stay out of
trouble. If those areas are reached, and not quickly
reversed back up, then the trends are changing and a decent
sized pullback should be underway.
On the upside, if a pullback can stay over the 1344 level in
the early going, it can avert a deeper drop and give another
push higher towards the 1348.00-1348.50 area on the ES
and/or the 2382.00-2383.00 area on the NQ before that
pullback starts. If the market gets there, and does not
reverse, then something odd is going on and it could mean a
little melt up towards 1351.50-1352.50 area but probably not
too much further.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1345.75-1346.25
1348.00-1348.50
1351.50-1352.50
1357.75-1358.25
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1344.00
1341.00-1340.50
1337.50-1336.75
1333.25-1332.50
1328.25-1327.25
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2377.75-2378.50
2382.00-2383.00
2388.50-2389.50
2396.75-2398.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2374.00-2373.50
2366.50-2365.50
2357.50-2357.00
2346.25-2344.50
2338.50-2337.50
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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PO Box 9783, Ft Wayne, IN, 46899
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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
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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
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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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