Back to the Rant

Yesterday I went on a little rant about support/resistance and traders getting skunked over and over again. The chart from yesterday and the one below show you in visual format how stubborn retail traders are in not adjusting to the market. This is one of the reasons we have so much chop around tops and important and even not so important levels. If Wall Street can make money right where they are sitting without moving the market too far, they will until it dries up.

The first from the left is the huge volume that set off stops by 1 cent! I half kiddingly joked about traders buying an upside break of the trendline yesterday, they did! This morning, they were skunked for the second time, but on a weak morning move, they bought it again and are now selling those positions. So the SPY is doing nothing but going above and below $136.15 and Wall St. is making money on the spread, rebates on volume and little moves up and down. It's crazy, but if you look at these areas I've highlighted, you'll see the volume increased at each one, it's a little hard to see with the white lines.