Personally, I don't think so. I think forecasts place a noose around your neck and keep you from simply trading what you see happening at the time when it happens. In fact, I believe that, if you are trading short-term intraday, a forecast means nothing to you, and the more times you see a forecast, the worse off you will be.

Each day is a new day, and, unless the market is enveloped in a major fundamental bias, it will not head in one direction or the other for the entire day. What the market will do most days is move in the direction of least resistance as it tests the strengths and weaknesses of the forecasters.

But, as we enter each new day, we can certainly have prepared guidelines to follow. These will fall under certain technical categories that we always know will influence the actions of the "smart money" in the marketplace.

If the prior day has left the TREND-following players with a positive direction to follow, and nothing has been revealed overnight that changes that opinion, the TREND followers will start off the day trading in that direction. They really have no choice.

If the current TREND is approaching critical geometric support or resistance levels, you can be sure the "smart money" will know where they are. The "smart money" will be watching for OVERBOUGHT or OVERSOLD indicator readings when the market price approaches any of these levels.

As traders, we need to evaluate the importance of the levels the "smart money" will focus on as the day progresses. Professional traders develop habits they stick to because they know that is the best approach to staying flexible.

Many start off the day with the basics, such as the knowledge of where the previous and nearest swing pivot levels are located and also the levels the Floor Traders (FTPs) publish each day as PIVOT POINT, S1, S2, R1, R2. Pros use the FTPs as a guide to market strength or weakness.

Prior SWING levels are important technically because they define past levels of implied support or resistance. During the course of a new trading day, the market will gravitate up and down, testing prior levels of support and resistance, as well as the FTPs.

As it does this, the market will attract buyers and sellers prepared to take profits and / or establish new positions in the opposite direction. If these implied support or resistance levels fail to hold the market, this occurrence will work its way down or up to the next obvious levels the "smart money" will have on their minds.

Potential support and resistance levels come in various forms as geometric levels derived from recent market activity. Traders work these levels out in relationship to the daily, 60-minute, 15-minute and right down to the 1-minute charts available to them.

Here's an example for the opening of Tuesday, June 27, 2006:

These levels are derived from the ES 20-minute chart activity during the 4 days prior to June 27. They should be sufficient for the next trading session, assuming there is no major breakout above R2 or below S2.

R2 is at 1266.25 and S2 is at 1250.25, which leaves us with a possible 16-point range to deal with.

Each day should be approached in the same way, and, then, you just let the market declare its own hand. Once the trading day begins, you can start to work it from a much closer perspective.

*Reprinted (and modified) with permission from Bryce Gilmore