TradeStalker's
Support and Resistance Update
6 / 5 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 6/5/2011
The market was overbought going into the Memorial Day
weekend, and then on Tuesday the market rallied to get
across the board sell signals. On Wednesday the market
opened lower and it was mostly downhill from there as the
market was hit hard. All bounces failed, and on Friday the
Nasdaq kept the market under pressure. After a gap down open
was reversed, a bounce lasted into early afternoon on the ES
and Dow but the Nasdaq didn't bounce much at all. The end of
day move was a choppy trend down move and market ended the
week at its lows on the futures contracts.
From the intraday highs made on Tuesday, the Dow dropped 470
points while the ES and NQ dropped 50.25 and 90 points,
respectively. The price action has been horrible for the
bulls, but my internal gauges are close to oversold extremes
again. The short term buy/ sell signals have marked the
recent lows and highs as they should. One more decent drop
would get the indicators deeply oversold, so an oversold
bounce could occur at any time now.
Even if we get a good bounce, it should have trouble holding
until the downside momentum is broken. The ES had a number
of roughly 8 point moves that failed late in the week. Just
to attempt to get turned around on Monday, the initial
resistance zones need to be cleared, then held on a dip to
take some pressure off. If that doesn't happen, then the
trends are still down and the ES could go for the 1288.25-
1287.75 area before a bounce can get underway. If that area
is reached and not held, then a move towards 1280 area could
be in the cards on this leg down.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1302.25-1302.75
1304.25-1304.75 *minor
1307.50-1308.50
1312.25-1313.00
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1294.50-1294.00
1290.50
1288.25-1287.75 *major
1279.25-1278.50
1270.75-1270.00
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2299.50-2300.50
2305.25-2306.25 *minor
2312.50-2313.75
2317.75-2318.50
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2282.50-2281.50
2274.00
2268.50-2265.75 *major
2255.00-2254.00
2238.50-2236.50
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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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.
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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