This past week’s Market action has taken the S&P down to my 1063.75 Trading Point and then went right through where a Trading Level should have held at 1052.25; suggesting a very weak Market. Here are my observations for this past week:

1. The Market continues to have more downside bias left in it. My newest calculations project that the S&P will trade down to 1034.00 (which happens to be a Trading Level) and maybe lower.
2. Trading Points are continuing to form at higher areas (a good sign).
3. RSI (Relative Strength Indicator) appears to be following the pattern in late June suggesting more downside to come.
4. Still staying below the 50 day and 200 day Moving Average.

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

1127.75
1098.75
1081.00 (Important Level)
1066.50 (Important Level)
1052.25 (Important Level)The Market should not go below this Trading Level
1034.25 Most likely “next stop”
1006.00 (Support)

And here are my updated Trading Points:

1198.50
1156.25
1125.75 New Trading Point
1119.50 New Trading Point
1065.50 New Trading Point
1063.75 HIT this Trading Point
1024.00 Possible Trading Point – However very minor. We may be getting the 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.