S and P is Starting To Retrace

Let’s take a hard look at where we are since last Tuesday, June 8th when we started this latest upward move in the Market (the S&P):

1. The Market has found resistance at my 1101.00 Trading Level.
2. RSI (Relative Strength Indicator) is responding well on this latest move up.
3. A new Trading Point at 1051.00 has developed.
4. The “floor” or support is confirming – and it looks like it will be 1034.50 (for the Sept. eMini contract) for the new bottom.
5. The Market is very close again to my “magic” number on the RSI when the Professionals like to short the market.  Be very careful.
6. Volume is up on a down day – leading me to believe we will be heading back down to my Trading Point soon.
7. The Market “tanked” in the last hour of trading today – not a good sign of strength.  Yet another reason for the Market to head back down to my Trading Point.

Again, don’t be fooled by this up move.  I expect to see the Market trade back down to 1051.00 (was 1055 on the June eMini contract).  Here are my updated Trading Levels:

1101.75

1086.25

1076.50 (Important Level)

1068.75 (Important Level)

1061.00 (Important Level)

1051.00 Trading Point

1036.00

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

1198.50

1156.25

1109.75

1051.00 (New)