TradeStalker's
Support and Resistance Update
6 / 6 / 2011
(Published Since 1996)
...............................................
Dateline: 6:06 pm eastern time, 6/6/2011
The ES opened flat on Monday and after a bounce to 1298.25
was reversed about 15 minutes into the trading day, it
dropped to test the 1290.50 support. A bounce off 1390.00
failed at 1294.00, and then another drop stopped at 1290.25
and turned up. A rally began but after getting to 1296.25,
the upside stalled and a rejection of 1296.00 made a small
double top and the market rolled over again. The 1288.25-
1287.75 zone was tested and a bounce followed, but it formed
a wedge pattern and a drop to 1283.25 occurred by 3 pm. A
bounce to 1288.50 turned pivotal, and unable to clear that
level the market sold off into the close.
As stated in last night's update the internal gauges have
reached a deep oversold condition. There was another closing
Trin above 3.00 as the internals on Monday were horrible
again. The only thing missing from a solid oversold status
is the Vix not giving sell signals. A "turn-around Tuesday"
is possible, but if the market cannot mount a decent rally
from these conditions, then a bigger bear move is underway
and the downside could gather momentum.
On Tuesday look for early weakness to be reversed to set up
a quick trade on the long side, especially if there is a gap
down open and the 1279.25-1278.50 area on the ES is defended
and quickly reversed back up in the first 30 minutes or so.
If that doesn't play out early then just wait for a bounce
to sell in to when it stalls out. However, if that kind of
early action does play out, look for the bounce to fail
around the 1288.75-1289.75 area on the ES if the market is
going to stay in weak hands. It will take a move back over
that area, that then holds at/above it on a dip, to dent the
downside momentum. Any trades on the long side should still
be quick scalp trades, because if this market doesn't have
the strength to get over the 1288.75-1289.75 area and stick,
then it still has another day of downside action before a
relief rally finally occurs.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1288.75-1289.75
1292.50-1293.00
1297.50-1298.25
1302.25-1302.75
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1283.25-1282.50
1279.25-1278.50
1274.25-1273.75
1270.75-1270.00
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2281.50-2282.50
2288.00-2288.75
2298.50-2299.50
2305.25-2306.25
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2271.50-2270.50
2268.50-2265.75
2255.00-2254.00
2248.00-2246.50
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
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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