Last week I mentioned that “we are beginning to see signs of improvement in the Market (S&P), especially looking at the RSI and price. However, volume is still a concern and not where I would like to see it.” The Market did make a nice up-move but…

call me cautious, the Market set itself up for this latest pull-back. This pull-back should take us down to 1073.75 and may actually take us all the way down to 1064.75. Overall, this will be good for the “internals” of the Market. If we close above Wednesday’s High of 1103.25, on above average volume, then I expect this next up move will eventually take us all the way to 1180.00 before the Market takes a “breather.”

Reasons for this pull-back:

1) Volume has been declining on the latest up-move
2) RSI did not confirm the recent High made on Wednesday

Therefore, here are the Trading Levels where the Market should find support:

My Intermediate Trading Levels:
1073.75
1064.75 (I don’t want the S&P to trade any lower than this)
1055.50

My newest Trading Point to watch out for is...
1066.25

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.