Gold charts

Gold's high this year was at the year R1 pivot at $1011 and the low has been the yearly Pivot at $867, as seen with the blue arrows on the chart. Traders need to watch the yearly pivots for the years trading range ( usually s1 to r1). Pivots tells traders where to look for support on resistance.

NDX for short term trading

The NDX futures today found support(blue arrow) on the weekly s1 pivot(Ws1) @1422. When the market opens the week at Weekly r1 or s1, that usually means the high or low for the week is in, and look for the Weekly pivot as your next target. I went long today @ (1426). The DOW, Euro and S&P also hit there Ws1 pivots today.

Dow Jones chart

the Dow Jones also went from weekly R1 to weekly S1 pivots, this past week( blue arrows).

Weekly floor traders pivot points

One of my favorite tools are called pivot points. They are a calculation based on the previous Open/high/low/close bar. Pivots are used in daily, weekly, monthly and yearly charts. They have been used for 50+ years, by floor traders at the NYSE and pit traders. R stands for "Resistance" and S stands for "Support". The chart above, shows how the weekly pivots(see the blue arrows) for this past week, was the high and low (R1 to S1) ....... almost to the penny! I use pivots to look for short term trend changes, and for my entry and exit targets. I use daily pivots for day trading, and weekly or monthly pivots for longer term swing trades(a few days to a few weeks).

this could be the start of a pullback

The DOW is starting to look weak after hitting the the 200 day a few weeks ago, and now is testing the 8200 level again, which has been support for 2 months. There is also a head and shoulders pattern too, which is bearish. If the Dow closes below 8200, this could be the start of a big decline. I would not be surprised to see 7500 or less by the end of summer. Bradley Model is calling for a trend change in July.

http://mpgtrading.blogspot.com/2009/05/bradley-model.html .