TradeStalker's
Support and Resistance Update
7 / 25 / 2011
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 7/25/2011
The ES gapped down more than 12 points on Monday's
open, and it found a low at 1326.75 and turned up in
the first 15 minutes of trading. A trend up move, with
the slow choppy grind higher, took the ES up to 1340.25
shortly after 1PM, and then the market pulled back. The
shallow pullback was to the 1337.50 support, then
turned back up to test of the 1330.75, (and the ES
missed the high by just .50 points) setting up a 123
top right around 2:30PM. The ES dropped down to 1333.50
with 30 minutes to go, and then bounced back to the
1336 resistance area. After poking over that level by
one tick, the ES turned back down dropping to 1333.00
just before stocks closed. After stocks closed, the ES
popped up to 1337.00 and then turned back down on the
way to a low at 1333.00 before settling.
The upside certainly appears limited at this juncture.
On Tuesday we get the consumer confidence data and new
home sales number out 30 minutes into the trading day.
Technically it looks like that unless the 1337.00-
1337.50 area on the ES is exceeded early on Tuesday,
and then holds that area on a pullback, the market will
stay in a weak state. At some point however, the market
should fall far enough where a decent bounce should
occur.
That should be the case if the ES drops down to the
1328.00-1327.50 area (or especially down to the
1323.00-1322.25 area) and gets its footing by stalling
out or forming a bottom pattern. That's what it looks
like it will take to get a decent rally attempt going
on Tuesday. Monday we had two-sided action after a big
gap down open, and would expect another two-sided day
where buyers back off if the ES gets to the 1340 area,
or just a bit above that. If buying doesn't come in on
a test of lower levels (especially the 1323-1322 area)
then things will have changed short-term. Unless/until
that occurs, bounce should fail so focus should be
mostly on the short side.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1337.00-1337.50
1342.50-1343.50
1347.75-1348.50
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1332.25-1331.50
1328.00-1327.50
1323.00-1322.25
1319.75-1318.50
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2428.50-2430.00
2437.50-2438.50
2446.50-2448.50
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2320.00-2318.50
2411.50-2410.50
2400.50-2398.75
2390.75-2389.50
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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
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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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