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
I am always open to questions, comments, or suggestions on how to improve this blog.

Monday, March 1, 2010

Resistance approach

A price extension off of our SPY Feb. lows gives a 61.8% extension right beneath previous support, with a 100% extension at higher highs in the $116 level. This corresponds to an external Fibonacci Retracement of 27.2%.IWM is curious here, being 0.95% off of it's Dec. highs, the $65 level seems bound to get hit here soonbut that $65 level is a strong level of resistance:
So, important levels to watch; $113.50 on the SPY, the $65 level on IWM, and up to $46 for the Qs.

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