I posted this chart yesterday, so keeping with the previous day's levels we move forward into today extending the gap range area and watching for Support/Resistance at previous strong volume points.
Previous Resistance turned Support held today (coming very close to previous day's VPOC).
Resistance throughout the day was the $116.90 area ( a previous area of strong volume support).Here's a look at the most recent Volume Distributions, today's lows came right into the zone of yesterday's VPOC. The indexes have some formidable resistance ahead of them (as they have since getting beyond their 38.2% retracements. The Q's being in the lead in terms of a recovery, it is a mere 12% off of it's '07 highs. Between it's close today and the $50 level, there's a 78.6% retracement zone and a prior swing high to contend with, if there's some selling on the horizon me thinks it should come with a test of these levels.IWM overhead gap fill scenario in play (same goes for DIA and SPY)
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
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