The Market (S&P 500) repeated last week’s action by making another new high this week then drop. And the S&P still looks like it is “exhausted” and is ready for a needed pull-back. And as I mentioned last week “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 still 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 volume is still not where it should be for sustained growth and is actually increasing on sell-off days.
4. The upward trendline has been broken; signaling that the Market is heading lower. True selloff signal will be when we see a close below 1155.50 on the eMini.
5. 4. RSI (Relative Strength Indicator) is not showing signs of strength and is now heading lower; signaling weakness.

Here’s my new Short term Trading Levels:

1186.50
1179.00
1174.50 (Important Level)
1170.75 (Important Level)
1167.25 (Important Level)
1162.50
1155.25

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.