TradeStalker's
Support and Resistance Update
7 / 6 / 2011
(Published Since 1996)
...............................................
Dateline: 8:36 pm eastern time, 7/6/2011
The ES opened down about 6 points on Wednesday and the
pressure stayed on until reaching 1326.50 about an hour into
trading. The move reversed back up but hit resistance at
1336.75 and dropped to 1331.25 with an hour left in trading.
Unable to push under 1332 and hold, buyers/ short covering
came in and the futures rallied to test the highs at the
close.
The way the market has been trading this week, it acts like
it should hold together for another day as it waits on the
employment numbers on Friday morning. Most of the internal
gauges have pulled back from overbought condition, and the
Vix is back to having just one sell signal at Wednesday's
close. These are short-term bearish divergences, and should
be worked out by Friday.
In the last hour on Wednesday the ES was able to hold the
1332 level and rallied into the close. As long as that level
holds on Thursday, then no damage will be done to the up
trend. A rally up to the 1340 level could occur early as
long as that holds (better odds if 1335 holds), but if so a
decent pullback should follow. If this plays out, then
holding the 1336-1335 area will be key to keeping the up
trend alive. That would be a mini breakout point, and also
the highs for the last three days and would be pivotal if
exceeded and then tested on a pullback.
On the other side of the coin, if there is another failure
to clear the 1336.50-1337.00 area on Thursday morning, and
the ES does not hold the 1332 area on a third test, then a
decent sized pullback is underway. A drop to test the
1328.50 area would be next and that should be about as far
as a pullback goes to keep the market from trouble. However,
if the market gets back down there and cannot get turned
back up quickly, then a drop down towards the 1325 area or
lower is likely. The biggest intraday pullback since this
rally started a week and a half ago has been 8.50 points on
the ES, and a drop of 8-10 ES points will need to hold on a
drop or the bulls will be losing control short-term at
least.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1336.50-1337.00
1340.00
1342.00-1342.50
1345.75-1346.25
1350.50-1352.00
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1332.50-1332.00
1329.25-1328.50
1325.00-1324.50
1320.25-1319.75
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2379.75-2381.50
2388.00
2393.00-2393.50
2397.00-2399.50
2406.75-2408.50
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2367.75-2367.00
2362.00-2360.00
2355.00-2354.00
2345.00-2344.00
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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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The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
guarantee that future results will be profitable.
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This is not an endorsement or recommendation of the SP500
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