The Market (the S&P) is starting to coil up like a spring. When it does this, it usually means an explosive move will follow. My thought is that it will be to upside. However, the Market needs to breakout above 1206.75 on good volume. I still see some short term weakness (down to 1149.00 to 1139.75 most likely finding support at 1142.50). It all depends on what the Fed Chief says today.

Now, let's see what this all means:

1. The Market is still trying to form a base (support).
2. The RSI (Relative Strength Indicator) is confirming this “basing” action.
3. We want to see the Market continue to “coil up” (the more it does the more explosive the action is).
4. The volume is confirming a consolidation in process.

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:

1188.25
1169.75
1158.25 (Important Level)
1149.00 (Important Level)
1139.75 (Important Level)
1128.25
1109.75 (watch for this support to hold)

Updated Trading Points:
None

Click on image to enlarge!

Have a Profitable Day Trading!

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