TradeStalker's
Support and Resistance Update
8 / 3 / 2011
(Published Since 1996)
...............................................
Dateline: 7:36 pm eastern time, 8/3/2011
A higher open was sold on Wednesday, and after
breaking/holding under 1250.50 the ES started its move to
down to 1230.25 about an hour into trading. A decent bounce
followed, but it didn't stick and a pullback followed.
However, once the 1242.50 level was cleared/ held, the
upside gathered momentum and took the ES to 1255.50 to make
a symmetrical move before pulling back. Buyers stepped to
the plate at 1246.50 with about 90 minutes left, and a run
up to the key 1258.00 level was reached just before the
close.
The market finally showed some signs of strength on
Wednesday. Still, the market has a lot of work to do to make
much upside progress. The 1258 zone which was key support
coming into Tuesday is now the first key hurdle above the
market to get over again. If it can do that, then the next
key area would be around the 1264-1265 area on the ES. On
the downside, there doesn't look to be a whole lot of risk
of buying a decent pullback unless the Wednesday action was
a one-day wonder.
The low on Wednesday was right at 11700 on the Dow cash and
just over a key area on the ES, so Wednesday's lows should
be a key as support areas now if they drop back down there
again. The market had a lot of downside momentum as it
dropped to new lows on Wednesday, and momentum tends to make
a high or low before price does. So, we could be seeing a
pretty good rally attempt over the next few days. However,
the odds are pretty good that this will not be a "V" type of
bottom. After this bounce runs its course, a pullback to
test the Wednesday lows should be down the road.
So, look for early weakness to be bought on Thursday,
especially if the initial support is tested and held. If we
get a pullback to that area, it should be bought if the
market is still big in itself out of a hole and is in decent
shape. If that area is broken, then we have a move down
towards the next support likely coming. On the other side of
the coin, if the ES pops up to the 1258.00-1258.50 area and
is rejected, then we should see a decent pullback in the
early going. If that happens to stop around the initial
support, then we can look for the market to turn around,
giving it a set on any shorts and a good buying opportunity
for another move back to the upside.
September 2011 SP futures resistance
symbols: emini = esu1 / big contract =spu1
1258.00-1258.50
1264.00-1364.50 *key
1271.50-1273.00
1277.50-1278.00
September 2011 SP futures support
symbols: emini = esu1 / big contract =spu1
1246.75-1246.25
1243.00-1242.50
1238.00-1237.50
1233.00-1232.50
1230.75
September 2011 Nasdaq futures resistance
symbols: emini = nqu1 / big contract = ndu1
2314.50-2315.50
2327.25-2328.50 *key
2336.50-2338.00
2348.50-2350.50
September 2011 Nasdaq futures support
symbols: emini = nqu1 / big contract = ndu1
2297.00-2296.00
2290.50-2289.50
2279.75-2278.50
2268.25-2266.75
2253.00
---------------------------
REMINDER:
Real Time subscribers can view these updates, and also get
real time instant messages, on the web at this site:
http://www.tradestalker.com/RBIchat.htm
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
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.
*************************************************
No comments:
Post a Comment