This week we find the Market (S&P 500) really beginning to consolidate and make a Trading Range. And as I mentioned last week, 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 now: 1217.00 down to 1177.50. 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. The Market has a Long Term Trading Level at 1174; if this is broken then I would expect the next down move to take us down to my Trading Level at 1147.50 (which is where my calculations suggest the Market would head if the Market turns Bearish).

The RSI (Relative Strength Indicator) is acting better and did turnaround near the “50” level on Tuesday. This usually signals that the Market met its Trading Level support. Volume is still weaker than I would like to see.

What does this mean? It the Market does not trade above the Trading Level of 1206.25 to 1207.25; then I expect to make a move back down to 1190.25 Trading Point this just developed. If we do go above that Trading Level; then I see the Market make its way up to the 1217.00 Trading Level.

Updated Short-Term Trading Levels below:

1217.00 (Upper part of the Trading Range)
1206.25 to 1207.25
1201.50 (Important Level)
1196.75 (Important Level)
1192.00 (Important Level)
1186.00
1176.50 (Lower part of the Trading Range)

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 (HIT)
1190.25 (New)
1117.25

Click on image to enlarge!

Have a Profitable Day Trading!

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