The Market Is Finally Pulling Back

Here is my mid-week update from last Friday’s post on TraderKingdom.com.  But first here is a re-cap of what I said Friday just in case you did not get a chance to read it…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.  If the Long Term Trading Level does not hold at 1174; then I would expect the next down move would be my Trading Level at 1147.50 (which is where my calculations suggest the Market is heading).

I went on to say last Friday that the…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.

And I mentioned…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.

All of this is playing out now we have to find where the Market wants to turnaround.  I will update when the Market seems to have put in a “bottom” from this latest retracement.

See my Longer Term Trading Levels below:

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

Have a Profitable Day Trading!

Advertisement