The Market (S&P 500) made another new high this week then dropped. And as I wrote last week “the S&P continues to look “exhausted” and is ready for a needed pull-back.” However, it is still finding buyers. Soon this ride upward will be over and the S&P will be heading back down to my Trading Points. Let’s review why I feel we are due (long overdue) for a retracement:

1. The Market made a new high this week; then turned around and closed lower.
2. The volume is still not where it should be for sustained growth.
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 not showing signs of strength and is almost flat (slight uptick); signaling weakness.

Here’s my new Short term Trading Levels:

1181.00
1173.75
1169.50 (Important Level)
1166.00 (Important Level)
1162.50 (Important Level)
1158.00
1151.00

Here’s my new Intermediate term Trading Levels:

1181.00
1168.25
1160.25 (Important Level)
1154.00 (Important Level)
1147.75 (Important Level)
1139.75
1127.00

And here are my updated Trading Points:

1193.50
1134.50
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.