As the market opened this morning, we saw price pushing up into resistance and our daily all-time high level. Price has reacted pretty strongly off of this level in the past, especially around January 2nd when saw a drop of over 100 points in the Emini S&P 500 market within just 9 trading days. Today, however, we witnessed price break through the resistance level and enter into a very strong bullish trend. We quickly recognized that we had favorable market conditions (I explain how to identify conditions in this blog post) and we took advantage in a couple of beautiful long setups.
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In the video above, I showed you the break of resistance along with how many of our traders took advantage of the trades in this amazing trading environment. You could see how just about everybody had the same type of entries and were collecting at around the same targets. The markets are now consolidating a little after the big overrun of key resistance this morning. Check out this daily chart to see how the close of today will give us more information about what we can expect in the coming days:
As you can see, we might be seeing more bullish strength in the next few days, but if price closes below resistance this afternoon, we could remain inside of some key daily areas and consolidate a little more. Check out this video for a more in-depth look at today’s action: