TradeStalker's
Support and Resistance Update
6 / 15 / 2011
(Published Since 1996)
...............................................
Dateline: 7:19 pm eastern time, 6/15/2011
The ES gapped down about 13 points on Wednesday and reversed
and a rally to 1275.75 followed. That stalled and reversed,
and a pullback to 1270.75 occurred. That gave a bounce to
1275.25 (at 20ema on 5 min chart) while the NQ stayed under
its 2238 level and turned down. After the first small dip, a
little bounce to the 1273.50-1274.00 zone set up a short and
the market went trend down to take out the 1262 level on the
way to to the 1258.25-1257.50 zone. The ES reversed up from
1257.25 but the new resistance at the 1263.50 was reached
and reversed and another drop tested the 1257.50 level for a
forth time. A pop up to 1262.00 was sold and the ES dropped
to a lower low at 1255.75 with 90 minutes left in stock
trading. Short covering took the ES back to the 1263.50 new
key resistance was sold before pulling back into the close.
The gap up on Tuesday and gap down on Wednesday leaves the
daily chart looking ugly. There were some somewhat bullish
occurrences though on Wednesday. At last the market showed a
bit of fear for a switch, as the Vix jumped almost 17% at
the close. A bit more of a jump on the Vix that is reversed
could give a number of buy signals. The ES did break the
1257 level it held 4 times before going to 1255.75, then
turned back up and stayed over it. It doesn't give a strong
bullish case, but some two-sided action will be more likely
on Thursday.
Look for early weakness to be bought on Thursday, and then
if the first decent bounce fails near the initial resistance
yet another decent drop should occur. If that initial
resistance is exceeded and held, instead of reversed, then a
push towards the 1266.25-1266.75 area before a decent dip
occurs. If that early "pop up and reverse" type of does
action occur from near the initial resistance areas, and a
pullback then goes through the 1258.00 level, a drop to/
through the Wednesday lows can be in the cards before a low
gets put in place. That could be around the 1252.00-1250.50
area on the ES and/or around the 1257 level on the SP500
Cash (SPX) where the up-sloping 200 day moving average
rests. A good rebound should start from around that zone,
otherwise the market could implode a bit and go for the
1246.00-1245.00 area on the ES before a decent trading low
is in place.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1263.50-1264.00
1266.25-1266.75
1270.00-1271.00
1276.00-1277.50
1281.00-1282.00
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1258.00-1257.00
1252.00-1250.50
1246.00-1245.00 major
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2208.00-2209.00
2212.00-2213.50
2216.00-2216.50
2222.75-2223.50
2230.00-2231.50
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2201.00-2200.00
2193.00-2192.00
2185.00-2183.00
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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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PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
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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