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):
- The Market has found resistance at my 1101.00 Trading Level.
- RSI (Relative Strength Indicator) is responding well on this latest move up.
- A new Trading Point at 1051.00 has developed.
- The “floor” or support is confirming – and it looks like it will be 1034.50 (for the Sept. eMini contract) for the new bottom.
- The Market is very close again to my “magic” number on the RSI when the Professionals like to short the market. Be very careful.
- Volume is up on a down day – leading me to believe we will be heading back down to my Trading Point soon.
- 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:
1076.50 (Important Level)
1068.75 (Important Level)
1061.00 (Important Level)
1051.00 Trading Point
And here are my updated Trading Points (again more upside than downside – a good sign):
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