The breakout on the S&P I pointed out last week on low volume predicted that we were topping out for this move. Now the Market (the S&P) has dropped back past 1337.75 (actually a little more than that). The next target (Trading Level) for this pull-back is 1320.75 (we were close today pulling back to 1325.25). Now what:

1. The Market appears to have hit its short term high and has pulled back to its breakout area.
2. The RSI (Relative Strength Indicator) never reached the high of February and therefore set itself up for a pull-back
3. Volume decreased as the Market headed higher and now is increasing as the Market is pulling-back.
4. The new Earnings Season is upon us. This is really affecting the market but it should stimulate the market overall
5. Looks like we got “another chance to buy at around the breakout price of 1337.75” as predicted last week.

Here’s my Intermediate term Trading Levels:

1337.75
1351.75
1339.75 (Important Level)
1330.25 (Important Level)
1320.75 (Important Level)
1309.25
1290.75

Updated Trading Points – this is a possible Trading Point:
1349.00

Click on image to enlarge!

Have a Profitable Day Trading!

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