an important price point in stocks like IBM, Wal-Mart, Johnson & John- son, which are heavily weighted into the averages? No. If you and I were to make plans for lunch, chances are we’d agree to noon or 1:00, maybe 1:30, right? Why not 12:08 or 12:42? They are perfectly valid times, are they not? But we human beings think in typically even numbers as we prefer 2, 4, 6, 8 to 1, 3, 5, and 7. We also gravitate to numbers that end in zero. This is how we think and behave, and you had better believe this makes its way into market action and order entry. When the crude oil market made its move towards $150 a barrel, why was this so impor- tant, and why did we fixate on that particular number as the high? It was an even round, decade number. In fact as it climbed, each decade num- ber along the way, 100, 110, 120, 130 . . . were psychological resistance for no other reason than when traders sit down and analyze the mar- ket, whether they use fundamentals or price, they will naturally gravitate to these familiar numbers and put their buy or sell orders there. Really, it is just that simple! You don’t have to be Freud to understand market psychology.