TradeStalker's
Support and Resistance Update
6 / 1 / 2011
(Published Since 1996)
...............................................
Dateline: 6:42 pm eastern time, 6/1/2011
The market opened lower on Wednesday, and in short it was
selling from the opening to closing bell. The 1341.00-
1340.50 area on the ES as the key support early, and the
1341.00 level turned resistance in the first 15 minutes and
the market turned back down and calmly ground its way almost
all day. After an early afternoon bounce failed at 1331.25
the level it was obvious the market was in big trouble and
only the closing bell could stop the bleeding.
The extreme overbought status was completely relieved on
Wednesday. The complacent bullish mood was turned around in
a hurry too. The Vix was reversed and jumped more than 18%
on Wednesday. In addition, the closing Trin on Wednesday was
an extreme 4.36.
This doesn't look to be a 1 day event. On Thursday there
should be follow through selling, and if so then a bounce
back should have trouble after a test of the gaps occurs. If
that happens, and a bounce back tests 1311.15 and doesn't
reverse, then the ES still needs to get back over the
1314.25 level to put a small dent in the downside momentum
on Thursday. If that is cleared, then there is a lot of
resistance areas staggered above, and should provide a good
spot for a shorting opportunity. As for support areas, there
could be a bounce from around the 1308.25-1307.50 area on
the ES but even then it shouldn't get too far. Until the
market shows signs of strength, and does more than give the
feeble bounces that go 3-5 points on the ES and fail, the
market is still vulnerable with a test of the 1298.25-
1297.50 area on the ES still possible on this leg down.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1314.25
1317.50-1318.00
1321.00-1321.50 strong
1323.25-1324.00
1330.75-1331.75
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1311.25-1310.75
1308.25-1307.50
1302.50-1302.00
1298.25-1297.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2324.50
2329.50-2330.00
2334.25-2335.25 strong
2341.75-2343.00
2348.75-2350.00
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2318.50-2317.50
2311.50-2311.50
2300.50-2298.50
2290.50-2288.75
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
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research and data believed reliable, but there is no
guarantee that future results will be profitable.
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This is not an endorsement or recommendation of the SP500
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