Today we find ourselves with the Market continuing to consolidate in price for almost 1 month yet the RSI (Relative Strength Indicator) weakening. Normally I would say that this would be a good point to anticipate an up-move for the Market but with a new Trading Point that has developed at 1088.00 (for the eMini); I still feel we will be heading lower before a true up-trend can be established.

Therefore, short term I would say that we head lower to my Trading Points. Longer term I see this Market consolidation setting up like a “coiled spring” leading to nice explosive move upward; that is, if we decidedly break through 1117 with strong volume.

Now, with the RSI hitting “50” on Tuesday, many consider this a good place to begin moving back into the Market.

I did not bother to update the chart below since not much has changed.

My Intermediate Trading Levels are still around:
1082.00
1069.25 to 1071.50
1060.75

My Trading Points to watch are:
1088.00
1066.25

Click on image to enlarge!

Have a Profitable Day Trading!

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