Support and Resistance levels

Support and Resistance levels and Rangebound trading
We hear every one talking about this, what does this mean, is there some element behind these numbers, i was skeptical so i began to watch how the market behaves around these levels
Currently lets assume the range for SP500 is between 1040 to 1110
what we need to watch is to see how the buyers get into the market when SP 500 is at 1040 and how sellers / institutions get out to book profits when it flirts around 1110
If thats how we are going to be until end of the year it presents opportunities to book to 20 to 30% returns in a calendar year if we have 3 cycles such corrections
So far in CY2010 we have had 2 .
Feb 2010 - first week
April 23-26th 2010
Im not sure the current correction we are in is over and we are headed towards 1110 SP500 and 11,000 DOW ( thanks AA DOW 30 is a drag now)
But when we do there is a great opportunity to make use of range bound market activities.
Since MARCH 2009, we have had 4 such corrections - July 2009 , Oct/Nov 2009, Feb 2010, May 2010
So its a matter of PURE PATIENCE and not getting swayed by market movements