Wow what a wild ride that was yesterday! Like I had said in my last couple of posts, “think of (the consolidation we are getting in the Market) as a coil of a spring being squeezed until something happens to make it explode either up or down.” Well we “exploded” to the downside. We went all the way down to my Trading Point (first discussed in my 2/12/10 post) in which I said we needed to HIT 1056.00. Then yesterday we plunged all the way down to 1056 to the penny on the eMini contact and then turned around. Hard to believe, but the way I calculated it, it had to be HIT. Obviously, we took out all of the rest of the latest Trading Points at 1190.25 and 1117.25 along the way.

Now we need to see a “solid floor” put in on this Market so we can head back up to the latest Trading Point at 1198.50. Wait for the Market to signal that it is ready to move higher. I will continue to monitor the Market and mention when it seems to confirm that the bottom is firmly in place. Keep reading my posts and my blog (see below for the URL). Meanwhile, I have updated my Trading Levels and Trading Points:

Updated Trading Levels below:

1217.00
1178.50
1155.00 (Important Level)
1136.00 (Important Level)
1117.00 (Important Level)
1093.50
1055.50

And here are my updated Trading Points will be HIT (updated). As I have been saying, “these Trading Points are going to need a major negative catalyst to the Market to head down to these numbers (still have not seen this catalyst).” Well we did yesterday:

1198.50 (New)
1190.25 (HIT)
1117.25 (HIT)
1056.00 (HIT)

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.