TradeStalker's
Support and Resistance Update
7 / 12 / 2011
(Published Since 1996)
...............................................
Dateline: 7:26 pm eastern time, 7/12/2011
The ES opened down about 6 points on Tuesday, and by
10AM the ES reached 1310.75 and turned back up. A
bounce took the ES up to test the late Monday high at
1319.50, then selling came in and a drop back to
1313.50 occurred before the Fed minutes were released.
After the release, the ES popped up to 1317.00, then
made a small dip back to 1315.50, and then turned up
and rallied to a 1323.25 high. Per last night's update,
we expected a reversal from the 1323.50 area, and the
market obliged. A break/hold under 1320 on the ES kept
the pressure on, and per our intraday message the ES
went back down to test the 1313-1312 zone. The ES
reached 1313.75 with 45 minutes to go and stock
trading. Buying/short covering gave a pop up to the
1317.50 level (just under the 1318 new resistance), and
being rejected the selling continued. The grind lower
off of the 1323-1324 zone took the ES down to test the
1308.50 level with 10 minutes left in stock trading,
and then the market barely budged higher into the
close.
The short-term indicators are getting oversold, but not
to a screaming oversold state just yet. The ES was able
to stay over the 1312 support for most of the day on
Tuesday, but made little progress with the exception of
the bounce up to the 1323.50 level from where a
reversal was deemed a possible. That 1312 level was
taken out late in the day, and the 1308.50
area was reached. The reversal from 1323.25 was bearish
enough, but the break and close below 1312 on the ES
just keeps the pressure on for now.
On Wednesday, we could see an oversold rally attempt to
come from lower prices. However, for now selling the
bounces should still be the better odds trade. It's
still possible that the ES drops down to the 1298 area
before getting a decent bounce attempt. In any case,
just to take some pressure off, the ES will need to get
above the 1313.75-1314.50 initial resistance, and then
hold at/above 1312 on a pullback in order to get
anything going on the upside. If that occurs, then the
1317.50 area should be hard to get over and stay there.
The market should fail there if it is still weak. If
there is no sign of a turn back down from that area,
then the Wednesday high area at 1323.25-1324.00 will be
a key area to get through. A move back to that area
should be sold, or else the market will be digging out
of its hole. If there is a good-sized rally on
Wednesday, the 1327 area should not be cleared/held. If
the market happens to get back up there, and the move
stalls out, it would set up another good selling
opportunity.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1313.75-1314.50 key early
1317.50
1323.25-1324.00 major Wed
1326.50-1327.00 strong
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1308.75-1308.00 key early
1305.50-1305.00
1298.00-1297.50 major Wed
1292.50-1291.50 s.t. major
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2348.50-2350.00 key early
2354.25
2363.75-2365.00 major Wed
2368.75-2369.50 strong
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2340.00-2339.00 key early
2334.50-2333.75
2324.00-2422.50 major Wed
2315.50-2314.50 s.t. major
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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