Range Breakout Leads To Next Weekly Zone
March 14, 2013 at 7:52 PM (SPY)(DIA)(QQQ)(GLD)(AAPL)
Market Gains Another 10 Points On Zone To Zone Move
We've watched the 1548/1549 Weekly Trade Zone serve as resistance for 2 days now. We watched price channel between the Upper Zone I just mentioned and the Lower Zone @ 1542/1543. The last 2 blog posts have the charts in case you missed the trades and or the price action as it unfolded. Price made the Zone to Zone round trip, a total of 9 times over 3 days. We knew this wouldn't last forever, nothing does.. at least not in this lifetime. The total of what the market made available (not us - the market), was 45 points.
We talked last night about how some traders were horribly frustrated by the 5 point range, while other traders (Partners perhaps?) were basking in the glow and wearing a "cat ate the canary" grin. Think for a moment about where you fall in. Was it nerve breaking, nail biting hell..? Or did you wear it like Mr. Rogers cardigan or your favorite pair of tennis shoes (the stinky ones)? Well, whether it was torture or a treat, we finally broke to the upside. That stubborn resistance @ 1548/49 (Weekly Trading Zone), finally gave way and within a couple of hours became the new support.
S&P 500 Emini Futures (ES) | Zone to Zone
If you've read the books, you've heard the "ceiling becomes the floor" analogy time and again. Guess what.. they're right, and you just lived through it. Not only did price finally break-out of the range, it came back to test 1548/49 as new support (the floor), and then made a mad dash to where? Exactly - the next Weekly Trading Zone. Like a heat seeking missile it ran 10 Points to 1559/60. Truth is, it came up 1 tick shy. 1558.75. Remember, Weekly Trading Zones may be deadly accurate on many occasions, but nonetheless, they are an "area".
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