2455 and 2656 Become Key Short-Term Resistance and Support

2008/8/20 15:11:18

Today, the market once again shamelessly delivered another textbook performance. This ID's analysis over the past two weeks about the three-level rebound has been perfectly demonstrated by the market. The subsequent trend has actually been analyzed before: below, the key is to hold 2,455 — today's upper edge of the daily bottom fractal; above, the goal is to break through 2,656 as quickly as possible to confirm that a third-type sell point does not materialize.

Of course, the above is stated from the perspective of hoping the market goes up. In actual trading, you absolutely must not harbor such thinking. Instead, react mechanically based on the market's actual movement.

Let me emphasize once more: don't even talk about divergence until you've clearly distinguished the levels. So-called "diverging again after divergence" is perfectly natural — it corresponds to different levels. Otherwise, could a 1-minute divergence reverse the market for 1,000 years? That would be chaos! One of the foundations of this ID's theory is levels — if you haven't learned to precisely and mechanically grasp them, then forget about divergence. Because at that skill level, all you can do is "back up" — there's no "racing" to speak of.

Today's rally was mainly supported by major rumors on the news front about economic stimulus measures. If this turns out to be true and they follow this ID's thinking for once, then these regulators can still be saved. Otherwise, if they're feeding another round of fake news to hoodwink people, then after the third-type sell point there will only be an even more ferocious plunge. So the news front is the most critical factor these few days. The meetings are almost over — time to do something useful. Otherwise, are they planning to add new events and provide new athletes for the Paralympics?

Don't want to say more. Let's see whether certain people know what they're doing — this isn't children playing with sandcastles. Don't act out of spite. As for all of you, regardless of whether you've perfectly followed the three-level rhythm as this ID described two weeks ago, such a textbook real-world performance deserves careful analysis. Master this, and your skills will improve considerably. Everyone, put in the effort.

Heading off, goodbye.