TradeStalker's
Support and Resistance Update
7 / 26 / 2011
(Published Since 1996)
...............................................
Dateline: 7:46 pm eastern time, 7/26/2011
After a flat open, the ES sold off for the first 40
minutes and reached 1325.50 before turning back up. The
bounce off that low reached 1332.75, which was just
under our 1333 new resistance, and there was a small
reaction as ES backed off to 1329.50. Another bounce
stopped right at 1332.75 again and then a pullback to
1329.00 followed. The market held its ground and turned
back up, this time getting to 1335.00 before stalling
out. A small pullback followed, and then a bounce to a
lower high was reversed, setting up a 123 top and the
market turned back down. The pressure was on when the
ES broke under 1332 and held on bounce, and the ES
dropped back to 1325.75 and closed the day right around
the morning lows.
NOTE: I will be away in the morning on Wednesday,
and will not be able to do any intraday updates
until the early afternoon. As usual, most of the
messages will be sent via the instant message
webpage on our site.
On Tuesday we had a bit of a double top as ES turned
down from a slightly higher intraday high in the
afternoon. By the close a double bottom was formed. A
break of this 1335 on top or 1325 on bottom is needed
to out of this range. Even if that occurs, I would
expect no more than a 3 point move on the ES above
Tuesday's high or below Tuesday's low before the market
makes another turn. That unless the market wants to
unwind on the downside. Indicators are slightly
oversold, and a lower open that rehearses from around
the 1323.00-1322.50 area should set up a good trade on
the long side. If that doesn't work out for an early
trade on Wednesday, then wait for the first bounce to
run out of steam to set up a shorting opportunity. The
market still looks tentative on bounces, so unless
there is a good trend up move going (preferably from a
lower open that rehearses, or getting over 1329 and
holding) be on alert for trend reversals. It happened a
number of times on Tuesday and likely will begin on
Wednesday unless the market is breaking down.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1329.25-1330.00
1334.50-1335.50
1337.00-1337.50
1342.50-1343.50
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1323.00-1322.25
1319.75-1318.50
1313.00-1312.25
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2427.00-2428.00
2335.00-2436.00
2446.50-2448.50
2454.50-2456.50
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2320.00-2318.50
2411.50-2410.50
2398.25-2396.75
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Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
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The foregoing has been prepared solely for informational
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This is not an endorsement or recommendation of the SP500
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