The Market (S&P 500) made another new high today then dropped. The S&P continues to look “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.
2. The Market is making new highs on low volume.
3. The upward trendline has become steeper and could be broken on a close soon; signaling that the Market is heading lower.
4. RSI (Relative Strength Indicator) is staying divergent to the price movement and signals weakness.

Here’s my new Short term Trading Levels:

1161.00
1150.50
1144.25(Important Level)
1139.00 (Important Level)
1133.75 (Important Level)
1127.50
1117.00

Here’s my new Intermediate term Trading Levels:

1161.00
1130.50
1111.50 (Important Level)
1096.75 (Important Level)
1081.50 (Important Level)
1062.75
1032.00

And here are my updated Trading Points:

1193.50
1151.25 HIT
1121.75 HIT
1134.50 New Trading Point
1120.50
1114.50
1104.75
1047.00 Major Trading Point (Dec Contract)
1019.00 Possible Trading Point – However very minor.

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.