RbS = Resistance becomes Support.
A strong trend day up after selling off in the morning right down to the previous day support, which happened to coincide with Tuesday's resistance as well as our 50-EMA on the 15-minute chart.
Here's a 5-min chart depicting the various times where Resistance becomes support (RbS) throughout the day.We even went so far as to close above the gap left from February 27th's gap down.
The last three sessions offered buying opportunities on the 15-min chart. Being that our 20- & 50-EMA's are in a bullish orientation we were looking to buy the three dips we saw on the 20-EMA on Monday, the 50-EMA price dip on Tuesday, and today's early morning 50-EMA price dip.The S&P500 is about to test the 752-780 range. Right in between this range lies the 50% retracement from our previous leg down. Our 20- & 50-EMA's on the 60-min chart have crossed over to the bullish orientation and we would expect a retest of the 20-EMA at least, if not tomorrow then Monday perhaps. It would be nice to see price pull back and find support at the 20-EMA range (around $73.00-$74) where we would see RbS.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.