TradeStalker's
Support and Resistance Update
7 / 5 / 2011
(Published Since 1996)
...............................................
Dateline: 8:36 pm eastern time, 7/5/2011
**Note: I will be away until the early afternoon
on Wednesday. I will send updates via instant
message as soon as possible but it may not be
until around 1 PM or so until I am able to do so.
My apologies.
The market opened a bit lower on Tuesday, then the ES
bounced from the 1330.25 level to 1335.25. That didn't
stick, and a drop to 1329.25 followed. A slow move up from
there failed at 1336.25 and then the ES dropped back to
1329.25 around 2 PM. That held and a bounce back to test the
highs occurred before the close.
The market gyrated on Tuesday, as the ES made these swings
intraday:
1335.25
1329.25 -6.00
1336.25 +7.00
1329.25 -7.00
1337.00 +7.75
A double bottom and double top was made, so the 1329.25-
1328.50 area on the ES is key on a drop and the 1336.75-
1338.00 area is key on top on Wednesday. The internal gauges
are still overbought, and the Vix reversal on Tuesday gave
3 of 5 sell signals. Odds still favor more downside action
short term.
On Wednesday we should get more two-sided action, but if the
1329.25-1328.50 area is tested again and not held, then a
top of some sort should be forming. Look for early strength
to be sold, and if that plays out then the 1332.00 will be
the first area that needs to hold. If that is held, then the
market could make another push higher. If that level is
broken, then the key support at the Tuesday lows will be
next. If that area is broken and not quickly reversed back
up, then the trend will be changing in a drop back towards
the 1320 area on the ES is likely. If the market gets hit
with selling on Wednesday, then the major area below is at
the 1313.25-1312.50 zone on the ES. If the market gets back
there over the next day or two, then another bounce back to
test these highs will be likely. However, the market sells
off that hard and cannot get turned back around, then the
market could get itself back into trouble.
On the other side of coin, if they pull back and hold the
1332 area and bounce back, then we could still see a move up
to test the 1342 area on the ES on this leg up. At the
worst, a test of the 1329.25-1328.50 area (or just a bit
lower then quickly turn up) that holds is about all that can
keep the market from getting into some trouble on Wednesday.
If the initial resistances cleared in the early going, and
not quickly reversed as expected, then the market can avoid
that deeper pullback until perhaps later in the day on
Wednesday.
**Note: I will be away until the early afternoon
on Wednesday. I will send updates via instant
message as soon as possible but it may not be
until around 1 PM or so until I am able to do so.
My apologies.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1336.50-1337.00
1342.00-1342.50
1345.75-1346.25
1350.50-1352.00
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1332.00
1329.25-1328.50
1325.00-1324.50
1320.25-1319.75
1313.25-1312.50
1308.25-1307.50
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2371.50-2372.00
2379.75-2381.50
2388.00-2389.50
2397.00-2399.50
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2365.00
2362.00-2360.00
2355.00-2354.00
2345.00-2344.00
2337.75-2336.50
2328.25-2327.50
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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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PO Box 9783, Ft Wayne, IN, 46899
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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
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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
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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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