Looks like this Market (S&P 500) continues to defy gravity. We did make it to my Trading Level last week at 1150.50 June e-Mini Contract (the actual high was 1150.25 – so I was off by .25) before making a small retracement. Then the Market turned around and went higher. This was not the scenario I wanted to see for the long-term health of the market. Anyway, Wednesday we made a new High with yesterday trading mostly lower. Again I would like to see more pull back in the Market before we make a really big push higher. What can be the catalyst for a major move up or down? As I see it, it will could be the health care vote (this may prove to be a good excuse to drive the Market higher or lower on some decent volume).

As I mentioned last week, the RSI (Relative Strength Indicator) continues to improve and is showing very good strength. The pattern the Market is forming (looks like it could be a cup-and-handle pattern – but now it may be just a cup) is a very strong one. We didn’t see enough volume on the move above 1141 to consider it a strong breakout. Therefore, I feel we should head back down to the 1146 to 1142 June e-Mini Contract area. My updated Trading Levels are below:

Here are my updated Trading Levels
June Contract
1155.75
1150.50 (Important Level)
1146.25 (Important Level)
1142.25 (Important Level)
1137.00

And here are my updated Trading Points which may be HIT (updated):
1117.25 (updated with June Contract)
1109.75 (updated with June Contract)
1100.50 (updated with June Contract)

Click on image to enlarge!

Have a Profitable Day Trading!

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