TradeStalker's
Support and Resistance Update
6 / 7 / 2011
(Published Since 1996)
...............................................
Dateline: 6:56 pm eastern time, 6/7/2011
The ES opened up almost 7 points on Tuesday and reached
1292.00 (just under the 1292.50-1293.00 resistance) before
dropping back to 1288.25. The market reversed back up and
went into a trend up move to 1293.75. A pullback held the
1291.00 updated support and made it to 1294.75 before
reversing and dropping back to 1289.25. Another pop up to
1293.75 failed, but the ES pulled back to 1291.75 (just over
1291.50 support) and popped up to a higher high at 1295.50.
That was rejected, setting up a short on the bounce to
1294.00-1294.50 zone and the reversal and 1294.25 then was
sold. The 1291 area was supported most of the afternoon but
when broken/ held in the last hour the downside gathered
momentum and the bottom side of the 1283.25-1282.50 support
zone was reached just before settling.
The market staged a decent oversold bounce but it refused to
stick. My short term internal gauges backed off the extreme
oversold condition by a bit. About the only technical
indication of a possible oversold bounce is closing Trin
over 1.09 for 5 straight days. Also, the 1282.50 level held
and the futures bounced to settle well over fair value.
With this oversold condition not yet able to spark a rally
that can stick, the easier trades should still set up on the
short side when a bounce stalls out. A lower open that gets
reversed should set up a good buying opportunity, and maybe
be the start of a good run-up to trade from the long side.
However, if there is another sizable upside open, and that
gets reversed from around the 1288.50-1289.50 area on the
ES, then selling should come in and a pullback will likely
occur before a decent set up to buy is seen.
If that happens and then there is a test of the 1282.75-
1282.25 zone on the ES that reverses again, it should then
start a decent rally from there. If that area breaks, then
the 1279.25-1278.50 zone should be the worst case drop on
Wednesday. If not, it's not good for the bigger picture as
the market would be breaking down despite deeply oversold
internal gauges. If there IS a rally takes out the initial
resistance and does not fail, then a move towards the
1291.75-1292.50 could be in the cards and possibly the
1297.75-1298.25 too if that 1292 area is broken/ held on a
dip, but should see sellers up there if it happens to be
reached on Wednesday.
June 2011 SP futures resistance
symbols: emini = esm1 / big contract =spm1
1288.50-1289.50 minor
1291.75-1292.50 strong
1297.75-1298.25
1302.25-1302.75 major
June 2011 SP futures support
symbols: emini = esm1 / big contract =spm1
1282.75-1282.25
1279.25-1278.50 key
1274.25-1273.75
1270.75-1270.00
June 2011 Nasdaq futures resistance
symbols: emini = nqm1 / big contract = ndm1
2278.50-2279.25
2284.25-2285.25 strong
2292.50-2293.25
2298.50-2299.50 major
June 2011 Nasdaq futures support
symbols: emini = nqm1 / big contract = ndm1
2269.00-2268.00
2265.75-2264.75 key
2256.50-2255.50
2248.00-2246.50
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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