Let’s get caught up…As you will see on the chart below we got close to the retracement I called for on Oct. 16th and did manage to HIT one of my two Trading Points at 1053.75. As I write this blog the, Wednesday’s low also came close to my other Trading Point at 1037.00 (in fact within 1 point). However, I am not satisfied that it didn’t HIT that Trading Point, therefore we should still HIT the 1037.00 Trading Point before I feel comfortable saying that we are on a new uptrend.

If you look at the chart, volume also suggests that we will see more weakness. Because of this I am cautious, however we are at a very good point to start “dipping our toe” back into the Market. I feel we should go down to my Trading Level at 1034.75 where I hope we will find support. If we do find support at 1034.75, watch for the Market to bounce off this Trading Level and start a renewed uptrend. This will coincide with large numbers of companies reporting their earnings (which can influence the Market one way or the other).

My next Intermediate Trading Level:
1034.75

And I still have one Trading Point to watch out for and should be HIT…
1037.00

Click on image to enlarge!