TradeStalker's
Support and Resistance Update
7 / 28 / 2011
(Published Since 1996)
...............................................
Dateline: 6:35 pm eastern time, 7/28/2011
The lower open was reversed about 15 minutes in on
Thursday, after gyrating around 1300 on the ES, and the
oversold rally started. It reversed off 1313.00, and a
test was quickly rejected, setting up a shorting
opportunity on the 123 top. The ES dropped through 1307
and held, giving the drop to 1298 as noted and reached the
next zone at 1295.00-1294.50 before firming a bit into the
close.
On Friday we get the GDP before the open, and then the
Chicago PMI 15 minutes in, and then Consumer Sentiment 25
minutes into the trading day. The market has had a rough
week this week, on the heels of last Friday's selloff. We
have quite a few oversold indicators so the worst of this
selling may be close to being over on the short-term.
Further pullback before this occurs is still likely the
way the market acted again on Thursday. However, if the
market gets low enough (especially near the 1285 area on
the S&P 500 cash, the 200 day moving average) and then
turned back up, that could be the start of a rally that is
sustainable.
So, Friday should be similar to the rest of the trading
days this week, giving us a two-sided action. If there is
early strength that stalls out, especially near the
1302.50 area early on Friday, that should set up another
trade on the short side. On the other side of the coin,
the ES did stop at the 1295 support area on Thursday. If
that is held in the first 25 minutes of trading than a pop
back up to that 1302.50 area should be in the cards.
However, if there is follow-through selling that breaks
that 1295 area, then a drop down to test the 1291.75-
1291.25 area will need to be defended to avoid seeing the
S&P 500 cash test its 200 day moving average. If the
market gets down there and shows signs of stalling out or
makes a bottoming pattern, then look for that kind of
action to set up a trade on the long side. If we get that
set up and the market rallies, it needs to have some gusto
behind it instead of being tentative and finding sellers
at the first sign of a stall. They moved back over the
1300 level from down there would be a positive for the
short-term.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1302.25-1302.75
1306.00-1307.00
1312.50-1313.00
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1295.00-1294.50
1291.75-1291.25
1286.50-1285.50
1278.50-1277.50
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2374.25-2375.25
2384.50-2385.50
2397.50-2398.25
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2365.75-2365.50
2354.00-2352.50
2344.00-2342.50
2328.00-2324.50
REMINDER:
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http://www.tradestalker.com/RBIchat.htm
---------------------------
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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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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