TradeStalker's
Support and Resistance Update
6 / 2 / 2011
(Published Since 1996)
...............................................
Dateline: 7:16 pm eastern time, 6/2/2011
In last night's update, we said to expect a bounce around
the 1308.25-1307.50 published support zone, and before the
open (in the chat-room), members were advised that the 1316
area would be a key dynamic resistance area during the first
10 minutes of trading. The ES gapped up slightly and a good
short trade was set up when the 1316 dynamic resistance area
(based on the 20 EMA, 5-minute chart) was rejected during
the first 10 minutes of trading. After the rejection, the
market traded down to an early low of 1308.25 (1308.25-
1307.50 support), then reversed back up to 1316.50 (a good
long trade). After a pullback, the market bounced back up to
put in a double top at the daily high at 1317 around 10:45
AM. A short trade was setup when the ES reversed on the
double top and traded back down to put in the daily low of
1304.25 just before noon. After putting in the low, the ES
bounced back up to 1309.25, where a good scalp short trade
was setup just before 12:30 PM when updated dynamic
resistance (20 EMA, 5-minute chart) was rejected. After
pulling back, the ES bounced up to 1313.75 around 1:10 PM,
where another scalp short trade was setup when the 60 EMA on
the 5 minute chart was rejected. After trading back down to
1310, a bounce to test the daily high area failed around
2:20 PM. After a pullback, the market bounced to test the
daily high area again just after 3 PM. The failure of this
test setup a final short trade, as the market traded back
down to 1310.50 just before 4 PM before settling at 1312.50.
After running up to overbought extremes on my short term
internal gauges on Monday and Tuesday, the market gave back
all the gains and closed at the lowest level since April 18.
The internal gauges have been nailing the highs and lows and
currently are about a day away from getting oversold again.
The Nasdaq is the only average yet to break down towards its
April 18 closing lows. The NQ would need to get to the
2300.50-2298.50 zone to test that support, and should before
this selloff is over.
On Friday morning we get the Employment data before stocks
open. The futures settled over fair value, so not much fear
being shown there. It is still a market to sell bounces for
now. A test of the initial support zones early on Friday
will need to be reversed back up quickly for the market to
avoid more trouble. On the top side, the Thursday high areas
were rejected in the morning and the afternoon, and will
need to be exceeded/ held on a dip to break the downside
momentum. Even if that happens, don't expect the bounces to
stick, as the damage done this week will take a good deal of
work to undo.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1316.50-1317.00
1321.00-1321.50
1323.25-1324.00
1330.75-1331.75
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1310.50-1310.00
1305.00-1304.25
1302.50-1302.00
1298.25-1297.50
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2334.50-2335.50
2341.75-2343.00
2348.75-2350.00
2357.75-2358.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2322.50-2322.00
2315.25-2314.75
2308.50-2307.50
2300.50-2298.50
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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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
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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