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Really seeing weakness in the S&P…
By Terry Martin   
October 01, 2010

The Market (S&P 500) made a new high today then dropped. The S&P looks “exhausted” and is ready for a needed pull-back. Let’s go over why I feel we are due for a retracement:

  1. The Market made a new high today; then turned around and closed lower on high volume.
  2. The upward trendline could be broken on a close soon; signaling that the Market is heading lower.
  3. RSI (Relative Strength Indicator) is divergent to the price movement signaling weakness.

Here’s my new Short term Trading Levels:

1153.00
1144.75
1139.50 (Important Level)
1135.25 (Important Level)
1130.75 (Important Level)
1125.50
1117.00

Here’s my new Intermediate term Trading Levels:

1124.75
1107.00 (Important Level)
1092.75 (Important Level)
1078.50 (Important Level)
1060.75
1032.00

And here are my updated Trading Points:

1193.50
1151.25
1121.75
1120.50 New Trading Point
1114.50
1104.75 New Trading Point
1047.00 Major Trading Point (Dec Contract)
1019.00 Possible Trading Point – However very minor.

Market Trading Guru 10.01.10
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.
 
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