April 26, 2013 Market Action

Today the market opened up and gyrated above and below the 1578 level but failed to get over initial resistance at 1583.00. Finally after a break of the 1578 level the bears held that ground and after a few test of the now resistance area the market dropped down to our 1572 support area. There was at least 5 points there to profit from on the move down. Again once support is broken and then held it sets up a short setup. That was the best trade of the day and it also goes with the basic principle of following the trend. The trend was definitely down after the decent sell off yesterday in the afternoon session. The numbers in the nightly update continue to frame the market I've been doing this for almost 30 years and the strategy has not changed much and will not the future. I can show you how to come up with these numbers and how to trade around them. check out the chart below.