The Market (S&P 500) continues to intrigue me. It is making new Highs on low volume then retracing, then pushes higher on low volume. This will stop soon so be careful. When the Market corrects, it will be fast. The Market did Hit my 1193.50 Trading Point and has established a new Trading Point. I would still 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 another new high this week; then turned around and closed lower two days later.
2. The volume is still weak and not where it should be for sustained growth and is actually increasing on sell-off days.
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 breaking down.

Here’s my new Short term Trading Levels:

1224.50
1211.25
1202.75 (Important Level)
1196.00 (Important Level)
1189.25 (Important Level)
1181.00
1167.50

Here’s my new Longer term Trading Levels:

1225.25
1179.75
1151.50 (Important Level)
1128.75 (Important Level)
1106.00 (Important Level)
1078.00
1032.50

And here are my updated Trading Points:

1197.75 New Trading Point
1193.50 HIT
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.