TradeStalker's
Support and Resistance Update
7 / 17 / 2011
(Published Since 1996)
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Dateline: 5:36 pm eastern time, 7/17/2011
The market had a rough week last week, as the market sold
off into Thursday. On Friday morning, a higher open was sold
and the ES traded down to the 1303.00 level in the first
hour of trading. The market got its footing and bounced back
to the 1312.50 level, which was at resistance. That move
stalled out, and the ES dropped back to test that 1303 low.
That level is able to hold that 1303.50 level, and in the
last hour buying and short covering started and the market
rallied to make slightly higher highs just before the close.
The market appears like it is ready to attempt another
relief rally. Some of the internal gauges got very oversold
on Thursday, and are beginning to turn up just a bit. Also,
at Friday's close we have three out of a possible five VIX
buy signals. So both the internals and the sentiment are
beginning to turn, and that should help keep the market
afloat. As long as the 1303.00-1302.00 area is held on a
pullback, then the market will stay out of trouble on
Monday.
This could set up two sided action with an upside bias on
Monday, so if there is early strength on Monday (especially
a move towards the 1319 area that stalls/reverses) it should
set up a selling opportunity. On the flip side, if the
market opens lower but can get turned around from near the
initial support areas, that should set up a trade on the
long side.
After the early action plays out, the bulls should be in
charge as long as there is not another drop down to the
1303-1302 area. That shouldn't be seen again on Monday,
otherwise a breakdown towards the 1298 area on the ES could
still be in the cards. If the market holds together however,
and can bounce from the initial support areas and then move
up and take out the Friday high, then we could still see a
move back towards the 1323.50-1324.00 area that gave the
market trouble last week. If that is poked over, then the
1328 area should be strong resistance if there is an
oversold bounce. If that is reached, a pullback at least
should be expected. If the market gets up there, but shows
no signs of a pullback, then a back up towards the 1332-1333
area could be in the cards this week.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1315.00-1315.50
1318.75-1319.50
1323.50-1324.00
1327.25-1328.00
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1310.00-1309.50
1303.00-1302.00
1298.00-1297.50
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2358.00-2358.75
2364.50-2365.25
2374.50-2375.50
2381.75-2382.50
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2347.50-2346.50
2332.75-2331.50
2324.00-2323.00
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Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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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
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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
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