The Market has decided to head higher too soon; leaving behind a Major Trading Point at 1052.50 that will need to be HIT before I am comfortable saying that this new rally is real. Here are my observations for this past week:

1. The Market has turned around and headed higher.
2. The volume is very low for this latest move up (not a good sign).
3. New Trading Point has occurred at 1052.50 (indicating that the Market should be pulled back down to this area)
4. RSI (Relative Strength Indicator) appears to be acting better; confirming the move up and showing some strength.
5. The S&P has finally closed above the 50 day Moving Average but still below the 200 day Moving Average.

Here’s my updated Shorter term Trading Levels:

1126.75
1105.50
1092.25 (Important Level)
1081.50 (Important Level)
1070.75 (Important Level)
1057.50
1052.00
1036.25 (New Support)

Here’s my Intermediate term Trading Levels:

1127.50
1098.75
1080.75
1066.50
1052.00 (Important Level) This is where the Market should go back to, then head higher
1034.25
1005.25

And here are my updated Trading Points:

1198.50
1156.25
1125.75
1119.50
1065.50 HIT this Trading Point
1052.50 New Trading Point (the S&P will trade down to here – Major 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.