“Lets your stocks tell you what to do by the action they exhibit”
As you can see multiple resistance zones as shown by the red lateral resistance line and Trend Channel Resistance called the ball. It told you all you needed to know to either lock some gains or stay away from going long this index. This is how we use support and resistance to guide our decisions.
Now from here? Its all about what? Support zones of course be it the blue line, the 50 day or even trend channel support in green.
For those of you who are familiar with Elliot Wave Theory? When you look a the numbers yo can see what MAY be the completion of a 3rd wave up of what could be a 5 waves up affair when al said and done. First lets see where we stabilize on the way down and see if indeed this truly is the start of a 4th wave corrective pullback. All of the above is why this is an awesome chart!