The Market (S&P 500) repeated the last 2 week’s action by making another new high this week and in the process almost Hit my Trading Point at 1193.50; only then to drop off the high. The S&P looks like it is setting up for a retracement and I would watch for a break to the downside as soon as the S&P closes below 1167.75. Now let’s go over my reasoning for my continued “Bearishness”:

1. The Market made a new high this week; then turned around and closed lower (what it has done for the last two weeks).
2. The volume is still not where it should be for sustained growth and is actually increasing on sell-off days; and very low when the S&P hit its new high on Monday.
3. The upward trendline has been broken; signaling that the Market is heading lower. True selloff signal will be when we see a close below 1167.75 (adjusted up from last week due to Market action) on the eMini.
4. RSI (Relative Strength Indicator) is getting worse and not showing signs of strength. It is heading lower; signaling weakness.

Here’s my new Short term Trading Levels:

1193.25
1184.50
1179.00 (Important Level)
1174.50 (Important Level)
1170.25 (Important Level)
1164.75
1155.75

Here’s my new Intermediate term Trading Levels:

1193.00
1175.25
1164.25 (Important Level)
1155.00 (Important Level)
1146.25 (Important Level)
1135.25
1117.50

And here are my updated Trading Points:

1193.50 We almost HIT this Trading Point on Monday
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!

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