April 25, 2013 Mid Day Blog Update

Today the market opened a bit higher and after a slight pullback we had a run up through the 1583 area on the ES. As I stated in the nightly update last night and I quote "A quick move over 1580 could bring in a bit more buying and test the 1583 area on the ES. That should be sold if the market can overcome bearish odds and get that far. If there's no rejection of that area, then it's a stronger day than expected for sure and the 1588 area would be all that is in the way of testing the 1593.00 current day session high" As you can see from the chart above, we had a good move over 1583.00 and so we were expecting a stronger day and when we came back to test the 1583 area again it setup a perfect opportunity to get long and hold it to the 1588 area which was the next resistance. That area later turned into resistance again after it was broken when the 1588 area was rejected on the second test. Once you understand how to read the market using the support and resistance techniques I use things become much more clear on how to trade. Imagine if you had that information last night, you could have easily made 5 points today on that trade alone. The market respects the s/r zones daily and in combination with the setups outlined in my ebook and DVD series you have an arsenal to extract money from the market on a daily basis. All it takes is some dedication and a bit of work to learn the setups and techniques.