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I’m a Buyer at 800

Posted on March 24, 2009 by Adam

Just as the 800 level acted as an area of resistance on the way up, it will now become support for this pullback. Yesterday’s rally, on top of an incredible week last week, made it clear that big buyers have started to enter the market.

I want to be on the same side of the trade as them. This trick is figuring out where they plan to step in and buy some more.

I’d be willing to be quite a bit that the next rally comes right after a retest of 800. Once again, moving averages, fibonacci, and investor psychology come into play. This time, those factors will act as support.

In short, I’m looking to buy this market at the next low-risk entry point. When we trade 800, I’m going to start buying into this pullback pretty agressively.

Happy trading!

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