BBMAC - this is not a specific poke at you but In the case of short term trading the S&P, the above statement is not correct.
This is why I think we can comment on our own markets and timeframes but not see these as generalisations.
Specifically, if you say that support sometimes works and sometimes doesn't and it's as simple as that, then this is not always correct. Specifically on the S&P in the short term it is not as simple as that. You can often, but not always, tell whether support will be held or broken by watching the order flow but not the price action. Sometimes it is cut & dry. Others it is not so clear. Nothing on the chart will tell you whether it will be broken or not. Nothing in the price action you see on the chart will tell you this. It is only the examination of additional information that will tell you. This is very specific to this market and day trading and I cannot comment on it's use elsewhere.
In stocks, when a buy out is announced, the share price of that company will move up to the buy out price and stick to it with very little deviation. This will appear to be resistance. If the buy out negotiations fall through then price will drop. In the future, there is no reason to expect that buy out price to be resistance. The price went there because it had to, yet it has no significance in the future.
I wonder sometimes if people ever look at their failed trades and try to figure out why they failed and look to avoid the mistake. I would wager that most people do not.
