Looks like the Market (S&P 500) is beginning to consolidate; if this is true then think of it as a coil of a spring being squeezed until something happens to make it “explode” either up or down. The Trading Range of the Market is: 1210.50 down to 1179.75. A break above or below these levels will determine which way the Market is heading in the short-term. I will update with projections once these levels are broken.

RSI (Relative Strength Indicator) is a little “weak” and the volume is better than it has been but still weaker than I like to see for the Market to continue to climb higher, suggesting a downtrend is possible.

Now the Earnings are pouring in and as I have stated in past blogs, I would expect companies to do well due to their year over year results. However, not only do the companies have to do well with their Earnings, but even more important they need to have a good guidance projection. Failure of good guidance by companies will hurt the continuation of the uptrend we are seeing in the Market.

Like I mentioned last week, the Market is making new highs on low volume – not good and could retrace to at least the newest Trading Point at 1192.75. We hit that Trading Point and went all the way down to my lowest Trading Level at 1179.75 (to the penny) before finding support and rebounding. Let’s see how long we will be in this Trading Range.

Here are my updated Trading Levels:
June Contract

1237.25 If 1211.50 is broken through decisively
1211.50
1201.75
1195.50 (Important Level)
1190.75 (Important Level)
1185.75 (Important Level) Thursday’s low turned around at this Trading Level
1179.75 the Market found support here

And here are my updated Trading Points which may be HIT (updated). These Trading Points are going to need a major negative catalyst to the Market head down to these numbers (still have not seen this catalyst):
1208.25 (New)
1192.75 (HIT)
1117.25

Click on image to enlarge!

Have a Profitable Day Trading!

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