Today is Wednesday, April 30 and resistance is met at 8240, will it break through?
Today’s trading went easy, picking up all trades entered, 8 for 8, but all the trades were very small contract size. I just took it easy because yesterday after the Fed announcement, which I don’t even know what they said, I took a trade that looked real good. I planned it for a high point move and it played out as planned, 5 1/2 points on 5 contracts, 1375. So I just took it easy today and totaled little over 4 points, but just on a few contracts.
Yesterday, I said to watch the 8250 level, that was going to be a key resistance level. Well, it went right up to it yesterday and retreated like it saw a ghost, straight down. Today, it went for a second run at that resistance level, same thing, retreat. Two attempts and no luck. That level will need to be broken to the upside for the trend to continue. Tomorrow, I will show a chart of it, looks very clear.
Also, in looking at the Fed news release, it was funny to see it play out exactly like I said that it usually does. That is, after the announcement, it will shoot in one direction, to suck players in, then over shoot in the other direction and take everyone out and then it will establish the move that it wants to make. Pretty much exact. Once it hit that 8240-8250 level, it went straight down.
All of this is not really that important. It’s only important that you are able to position yourself to take advantage of some of these moves and I did that as stated above.
I will post a full article for tomorrow’s blog and possibly show the trade after the Fed news – I recorded it!
Have a great evening!
http://www.screencast.com/t/xMyEoaQud Today’s equity chart
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- Fibonacci Level’s holding at 62%
- “Day Trading Support & Resistance”
Tags: contracts, Dow, equity, federal reserve, resistance
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