What a wild ride the Market (the S&P) has given us this week. As I pointed out a couple of weeks ago, the Market broke through an important Trading Level at 1291.25 and then continued to drop. I have a second chart to show this classic example of a trend change. Good news is that the Market is setting up for a new (more gradual) trend change. I would keep my eyes open for a close above 1184.00 on good volume; this could then be the start of a new uptrend.

Therefore, let’s see what this all means:

1. The Market is trying to form a base (support).
2. The RSI (Relative Strength Indicator) is confirming this “basing” action.
3. We want to see a confirmation of a bottom taking shape before getting back into this market and a break above 1184.00 on good volume as stated above.

Here’s my new updated Long term Trading Levels:

1354.50
1288.25
1247.75 (Important Level)
1215.00 (Important Level)
1182.25 (Important Level)
1141.50
1076.00

My new Short term Trading Levels:

1184.00
1158.75
1143.00 (Important Level)
1130.25 (Important Level)
1117.50 (Important Level)
1101.75
1076.00

Updated Trading Points:
1197.50 New Trading Point

Click on image to enlarge!

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.