The Market (the S&P) looks like it is losing steam, but it may make a run to 1118.00 before starting a measured move back down:

1. The Market has been working its way upward since last week leaving behind a few Trading Points – see below.
2. The “floor” or support appears to now be confirmed at 1038.50 which should be the new bottom.
3. RSI (Relative Strength Indicator) continues to respond well on this latest move up.
4. The Market has confirmed a change in its trend line from Bearish to Bullish.
5. The Market is at my “magic” number on the RSI where the Professionals like to short the market. The Market needs to stay above 50 on the RSI with strong closes. Otherwise be very careful.
6. Volume is now confirming this move up.
7. The Market has closed above its 200 day Simple Moving Average for the last couple of days – a good sign.
8. If the Market pushes higher on good volume and closes above 1118.00 that will be a very good sign of strength of the Market.
9. Most likely the catalysts to drive the Market down will be either the Economic numbers or the debt crisis in Europe (great excuses for Traders to move the Market to where they need it to go).

Here are my updated Trading Levels:

1143.25
1118.00
1102.25 (Important Level)
1089.50 (Important Level)
1077.00 (Important Level)
1061.25

And here are my updated Trading Points:

1198.50
1156.25
1109.75
1086.00 New
1063.00 New
1050.75 New

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.