TradeStalker's
Support and Resistance Update
6 / 12 / 2011
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 6/12/2011
It was another bearish week for the market last week, and it
ended with the market taking another drubbing. On Friday the
ES gapped down 4.50 points on the open, and after a bounce
from 1273.50 to new resistance at 1276.00 stalled, it set up
a shorting opportunity and a drop to 1269 followed. A bounce
then failed just under the 1273 updated resistance, and a
trend down move to the 1262 support/ target was met before 2
pm. The market turned up and rallied to test updated
resistance given at 1273.50. The move peaked at 1273.75 and
pulled back. I warned of a 1-2-3 top being a possibility up
there, and after a dip to 1269.25, the ES popped back up to
1273.25 and reversed, giving the 1-2-3 top just in time for
the drop back to test 1262.75 just before the close.
Since the last day of May, the SP500 cash has lost 74.22
points in 8 days on closing basis. It doesn't look to be
over yet either. Despite an oversold status, the bounces
refused to stick last week. The failure at the 1288.50
resistance level on Thursday on the September futures
contract led to a last hour drop. The subsequent gap down
open on Friday leaves the market with a lot of work to do to
change things short term. The 200 day moving average on the
SP500 cash is at 1254, and in the last decade that is tested
at least one time per year. Given the recent action, unless
there is some reason for a change, that should be seen
before this bear move ends.
On Monday the 1262 area on the ES will be key early. If that
is not defended, and there is a gap down open, then that
area should turn into decent resistance on a bounce as the
market goes towards the 1258.25-1257.50 area on the ES
and/or the 2207.00-2206.25 area on the weaker Nasdaq 100
futures (NQ). If there is a reversal from there, then a
bounce could occur. Just remember, a bounce shouldn't exceed
12 ES points from bottom to top before a stall/ reversal
occurs if this bearish action is going to continue. That has
been about as good as a rally goes before running into
selling lately.
If there is a higher open and early rally on Monday instead
of follow through selling, then the initial resistance areas
need to be exceeded/ held to go for the 1273.25-1273.75 area
on the ES, which was rejected late on Friday. A move over
that area will need to hold to begin to dig out of this hole
short term.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1267.50-1268.00
1273.25-1273.75 *key
1276.50-1277.00
1281.00-1282.00 *strong
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1262.50-1261.75 *key
1258.25-1257.50 *strong
1252.00-1251.50
1245.00-1244.00 *major
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2224.50-2225.25
2234.00-2235.00 *key
2240.25-2241.25
2248.50-2249.50 *strong
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2215.00-2214.50 *key
2207.00-2206.25 *strong
2196.75-2295.75
2186.50-2184.50 *major
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
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