TradeStalker's
Support and Resistance Update
8 / 1 / 2011
(Published Since 1996)
...............................................
Dateline: 7:36 pm eastern time, 8/1/2011
The ES gapped up 15 points on the open on Monday, and from
1304.58 a 29.00 point drop down to 1275.50 followed. After
reaching that level, the first bounce to 1286.50 was sold,
and after another dip a bounce to 1285.50 was sold. The
market rolled over again and stayed in trend down mode until
reaching 1270.25 around 12:30 PM. The market turned up and
ground its way higher to 1277.00, and then a pullback to
1272.25 followed. Buying came in around 2:30 PM and the
market went into rally mode. The 1276.50 level was exceeded
and held, and they moved up to 1283.50 by 2:30 PM. The ES
pulled back to 1279.00, and then quickly reversed that
support area, before running up to the 1285.00 level in the
last 10 minutes of stock trading. A drop back down to
1276.00 occurred as the futures dropped to close about 5
points under fair value.
The market action is still poor, but there was a sign of
firming up with the rally in the last 2 hours on Monday. The
only potential plus technically was that the reversal by the
VIX gave 3 buy signals out of a possible 5 at Monday's
close. Also, the SP500 cash closed just over its 200 day
moving average. Aside from that, things are oversold but
backed out of extremes on some indicators on Monday.
On Tuesday we should see another 2 sided trading day. Early
weakness needs to stay over/ at the initial support if there
is going to be a chance for a snap-back rally attempt in the
early going. If that occurs, or there is early strength
instead, look for good resistance at the initial resistance
areas. If those are reached and not rejected, then a move
back up towards the 1288.00-1288.50 zone could be in the
cards. If that happens and then a pullback cannot hold the
1283.00-1282.50 area on a pullback, then a roll over to test
the 1277.00-1276.50 zone would be key support to avoid a
move to the 1273.00-1272.00 zone, or possibly take out
Monday's lows before reversing back up.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1284.50-1285.00
1288.00-1288.50 *strong
1292.00-1292.50
1297.50-1298.25
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1277.00-1276.50 *pivotal
1273.00-1272.00
1270.25-1269.50
1266.00-1265.25
1258.50-1257.50 *major in case
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2352.50-2353.50
2358.50-2360.25 *strong
2367.50-2368.50
2380.50-2382.00
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2334.75-2333.75 *pivotal
2325.50-2324.50
2320.75-2319.50
2311.75-2310.50
2296.75-2294.50 *major in case
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
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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
contracts in the TradeStalker Updates specify a manner
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
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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