MARKET FOLLOWS THE OUTLOOK 4/9/12

THE market seemed to follow the outlook:  we needed a test of 1382-1384.  Buyers could profit and last evening we were long 1374 and again suggested it was a buy level early this AM.

[07:29] <CM> the overnight play stop at 77.5 (post deleted showing long 1374)    pre us open testing highs again  1378 resist for a bo 




This play looked promising again at the US Open.  B's 5-6 and B's 23-26 offered entries at the buy level which was above the 1370 target mentioned in the prior week outlook.  When these buy levels develop, and it could just as easily be a sell level, the BOTs are helpful in determining the range and break out targets.

Today, the trading emphasis is on another tool: the buy/exit and sell/exit analyzer.  BE and SE levels develop each day and in each market trading zone.  The tool  is used to find entries then the exit(s) which will often be in a trend of various bar time lengths.  The wider the exits, the better the trend or hold period.  As exits begin to narrow, the trend/PA is likely to stall if not reverse.

Today, the BE's were at +3, +6, +7.5, and  +8.5.  The gaps between the exits began to narrow and we had a TL reversal break.  The short were +2 and +5.5 back to the support.

BOTs and BE/SE, a winning pair.