Let’s recap what has been happening in the Market (the S&P) lately.

1. The Market has started its retracement in earnest – Hitting my Trading Points from last week, 1151.75 and 1107.50.

2. The Market is heading down to one of my old Trading Points at 1051.25 – which happens to be near one of my Trading Levels at 1050.00.

3. The Traders started shorting the Market when the RSI rose to 50 on May 12 as predicted in last week’s post.

4. The “floor” or support has not been confirmed yet – will post when confirmed.

Additionally, today is Triple Witching and anything is possible. Watch out for even more “wild” swings in the Market. There is an expectation on the Street that today will continue to see weakness. This will be due to Traders not wanting to leave money in positions over the weekend and risk being on the wrong side of the Market when the exchanges open on Monday. However, Traders may want to take advantage of these “bargains” which of course would move the Market higher.

Trading Levels below:

1217.00
1178.50
1153.00 (Important Level)
1133.50 (Important Level)
1113.75 (Important Level)
1089.25
1050.00

And here are my updated Trading Points (more upside than downside – a good sign):

1198.50
1156.25 (New)
1109.75 (New)
1051.25 (old Trading Point)

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.