TradeStalker's
Support and Resistance Update
6 / 13 / 2011
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 6/13/2011
The market opened higher on Monday and the ES reached
1271.50 about 15 minutes into trading and then pulled back.
A small range between 1267.50 on the bottom and 1271.25 on
top formed but another attempt to push higher failed a 3rd
time at 1271.00 and finally broke to the downside. The move
gathered steam and the market fell to new lows for the move
with the ES reaching 1259.50 before reversing. The move back
up picked up some steam too once the 1263.50 area was pushed
through, and the ES reached 1271.75 before pulling back 4
points on the ES. A pop back up to 1271.50 was rejected, and
then the ES chopped back to the 1264.50 updated support just
before the close.
Once again the bounces couldn't stick on Monday. The
internal gauges are on the oversold side on neutral except
for a few breadth oscillators. The McClellan oscillator is
at -221 which is a normal extreme. Also on the slightly
bullish side, the Vix finally jumped a bit showing a bit of
fear for a switch. Prices made lower lows and lower lows
again on Monday.
There was good buying at lower levels on Tuesday, but eager
sellers when the ES refused to hold the 1271 area and the
Dow cash wouldn't stick over 12000. If the initial support
can hold early on Tuesday, then a pop up to exceed the
Monday highs can change that streak, and a decent move up
could occur. Even if that's the case, the market should
still have a hard time holding up at higher prices. The
12000 area on the Dow cash needs cleared and then needs to
hold that area on a dip to begin to dent the downside
momentum.
On Tuesday the 1264.50 area on the ES should be key early.
If that area is held, then a move back up to test the
1270.50-1271.50 zone, or a bit higher, should be in the
cards. If the market gets back up there and is rejected
again, then a move back towards that 1264.50-1264.00 area
should be in the cards again. If held, then the market will
be getting legs to try another move up. If the market can
NOT take out the Monday highs, and the 1264.50 area is not
defended on a dip, then a test of the 1258.25-1257.50 area
could be in the cards. If so, expect that area to have
buyers waiting as it wasn't down there for very long on
Monday and likely will bring in short covering on any hint
of a turn back up from that area. If no turn comes from that
area, then watch the 1254-1262 area on the SP500 cash for
key support on this leg down.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1270.50-1271.50
1273.00-1273.75
1276.50-1277.00
1281.00-1282.00
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1264.50-1264.00
1260.00-1259.50
1258.25-1257.50
1252.00-1251.50
1245.00-1244.00
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2229.50-2230.00
2234.50-2235.00
2240.25-2241.25
2248.50-2249.50
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2216.25-2215.50
2211.00-2210.50
2207.00-2206.25
2196.75-2295.75
2186.50-2184.50
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---------------------------
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
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is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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