S&P closed at 1519.79 last week. There is not much changed from the previous week. S&P is facing resistance between 1525-1531 and must conquer to continue towards 1550-1575. The target is 1565. There is bearish divergence developing but not very strong. I will be watching Dow Jones also which needs to cross 14,105. S&P future (ES) is trading at 1518 and it also needs to cross 1531. I will watch if Dow Jones and ES move together to the upside. The support below is 1500 and 1465.
US Stock Futures gapped up insanely at market open on Sunday afternoon due to positive news coming out of Spain.
ES made a high of 1342 and gained 20.50 points. The resistance in ES is at 1340-1345 range. Now ES needs to continue its upward move and cross 1345. There is a high probability that ES will fail to cross 1345.
June 12th is the market turn date and coinciding well with 1345 as resistance and failing it. In case the gap fails then the downside level to watch is 1328 – 1331 (the level it failed on May 30th) and then 1319 (the level it failed on May 31st).
If gap up does not fail (less probability) and ES crosses 1345 then it could run up to 1361 – 1367 level.
NASDAQ 100 Future (NQ) has strong resistance at 2617-2619.
We will find out soon.
June 11th, 2012 – Update
Markets did as predicted.
Now I see ES (S&P emini) to test 1280-1282 level. This price range was mentioned in earlier post too. 1297 is another pit-stop before 1282.
S&P today hit 1299 and bounced upward. Previously it hit low of 1296.5 so bargain hunters were watching the level and bought their stocks near the close of the market. However, I am also watching Dow Jones Future (YM) and YM is telling me that market has more legs down and the down move is coming. Dow Jones is expected to hit 11,869-11870 and S&P will eventually fall to 1268 and then 1250-1245. The support for S&P is still at 1297 and then 1282. Dow Jones closed at 12,393 and S&P at 1310.33
S&P and its futures (ES) are finding support at 1297. These may run up to 1335 and head back down. If not then next resistance is at 1344.
Close of below 1304 is needed for S&P to make the case for continuation downward move. For targets please read my earlier post.
In the afternoon of May 6th S&P future (ES) gapped down and made a low of 1342.50. Since then it tried to break 1342.50 but could not. Almost every day same scenario played out. As long as 1342.50 holds I expect ES to rise upward. If it breaks 1334 then it could drop to 1312.00 The probability of its going up is higher than going down. May 15th is the market turn date and this also supports the logic that markets are expected to move higher this week. But remember only God The-All-Know er knows all and no one in this Universe.
Futures fell sharply today at market open.
Dow Jones fell 135 points trading at 12,822, NASDAQ 100 fell 29 points trading at 2597 and S&P future (ES) fell 15 points trading at 1347.5.
ES made low of 1342.50. Tomorrow at market open I expect ES to hold 1342.50 level and rise upward.
But only God knows better!