| Dear Kings, As Andrew likes to say: “You can draw lines on a chart until you’re blue in the face.” He’s right. The world of technical analysis can get really hairy if you do it wrong. When it comes to technical analysis, I'm a strong proponent of the KISS approach — "Keep It Simple Stupid."
I really only care about two things. The first is price action. The other is volume. That’s all I need. With just this info, we can figure out the supply and demand behind every move in the market…
And create the two key lines that represent these ideas — support and resistance.
The selloff of the last six weeks has given us a great example of this technique in action.
Today, I’ll show you a key overhead resistance level for the S&P 500 — including a trading plan for if and when we get to that level again.
Even better, you’ll learn how to identify these support and resistance levels on your own charts.
And while all of this info is beneficial to any trader, those of you who participate in the Trade Room will have a head start when it comes to understanding this.
If you’re someone who is interested in joining me and Andrew Keene in the Trade Room, I’d suggest signing up now, as the room will fill up fast once the doors are opened. | 
| Andrew Keene has been absolutely crushing it.
Bull market, bear market, sideways market… It doesn’t matter to Andrew.
Because he’s found a way to get the inside scoop on what the big money market movers are doing with their money…
And pass those signals on to you, in REAL TIME.
One hour is all he’s needed to signal gains of 60%, 130%, even 180% from this method.
And for the first time ever, he’s opening enrollment for everyday traders like you to join him.
Click here for your chance to join before the room fills up. | First, let's start with the recent selloff in the S&P 500.
From March 29 to May 25, the market moved from a high of 4616 to a low of 3804. What followed was some choppy price action to the upside, tapering off at 4180 on May 30.
Check out this chart:  (Click here to view larger image.) See the gray circles? Those are the highs and lows of 4616, 3804, and 4180 I mentioned above.
You can think of these as "corners" of the downward move we've recently experienced. They give a great starting point to work out a trading plan.
Now, look at the period from May 29 through June 8, after the third gray circle. You can see that we began trading in a tight range.
This range gives us a really easy setup for picking support and resistance, due to one specific quality.
All the volume for those two trading weeks ACCUMULATES in this price range, meaning a LOT of money changed hands in this tight range.
When added up, it is a significant number of contracts — more substantial than a quick reversal on a single high-volume day.
With so much volume in this tight range, this extended sideways movement gives us key support and resistance levels to watch for the future.
Take another look at the chart, with those levels highlighted.  (Click here to view larger image.) I've highlighted the volume bars across the two trading weeks of this consolidation zone.
We can add up all those bars and see just how many contracts changed hands during that sideways move.
That’s a lot of volume for such a tight range. And it suggests there’s a lot of trading interest at those levels.
If we rally into this support resistance zone between 4080 and 4180, we can navigate whether it's best to buy puts or calls (because resistance and support can "flip" roles) by using our proprietary Trade Room Unusual Options Activity scanner. Regards,
Bryan Klindworth
Senior Analyst, Kings Corner P.S. I hope this was a good introduction to the basics of effective market technical analysis, but for a deeper dive, you’ll want to join me in the LIVE Trade Room every single day.
Trade Kings members are miles ahead of other traders just by listening and absorbing the kind of information Andrew Keene and I shout out in the Trade Room.
We’re opening the doors very, very soon…
Don’t miss your opportunity to get in line before they close.
Like what you’re reading? Have some feedback for us? Send your thoughts to KingsCorner@BanyanHill.com.
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