We are heading down to my 1063.75 Trading Point but will “find a bottom” at the 1057.50 down to 1052.25 Trading Levels. The Market has been showing signs of weakness as I have reported over the last week and a half.

Not much to change to my observations from last week:

1. The Market has more downside bias left in it. Could drop all the way down to my 1057.50 Trading Level taking out my 1063.75 Trading Point.
2. Trading Points are forming higher (a good sign suggesting that the Market should be establishing a support area soon)
3. RSI (Relative Strength Indicator) appears to be following the pattern in late June suggesting more downside to come.
4. Staying below the 50 day and 200 day Moving Average.

Here’s my Intermediate term Trading Levels (same as last five weeks):

1127.75
1098.75 I believe we should be visiting this level pretty soon
1081.00 (Important Level)
1066.50 (Important Level)
1052.25 (Important Level)The Market should not go below this Trading Level
1034.25
1006.00 (Support)

Here are my Shorter term Trading Levels:

1116.00
1110.00 (Important Level)
1105.25 (Important Level)
1100.25 (Important Level)
1094.25
1084.00
1057.50 (The Market should stop around this level)

And here are my updated Trading Points:

1198.50
1156.25
1125.75 New Trading Point
1119.50 New Trading Point
1100.25 HIT this Trading Point
1063.75 Should HIT this Trading Point (getting close to Hitting this Trading Point)
1024.00 Possible Trading Point – However very minor. Will take a big catalyst to move back down to this Trading Point

Click on image to enlarge!

Have a Profitable Day Trading!

For more from the Market Trading Guru, you can follow his blog at http://mrkttradingguru.wordpress.com to receive the daily Trading Levels or on Twitter: @MrktTradingGuru.