By John Pisanchik
The market found support at the 1040 level, exactly where it should, and chopped around there for a few days. Today’s rally late in the day is an indicator that the market should move higher early next week. A trading range has been defined with the bottom being a t 1040 and the upper band at 1100 in the S&P 500 Cash Index. Enjoy the weekend and Happy Trading.

By John Pisanchik

The market definitely took a turn for the worst on Friday and Monday and momentum to the upside is now over. The next probable direction is down and the 1050 level looks like it wants to be tested again. If that level does not hold, then the 1011 level will be tested. Time will tell if we are in a trading range between 1010 and 1100 in the S&P 500 Cash Index. Happy Trading.

By John Pisanchik

Last week the market met stiff resistance at the 1125 area in the S&P 500 Cash index. It chopped around there for a few days and then came off with a pretty good down swing on Wed, 8/11. That process of chopping around at 1125 and the downswing broke the upside momentum of the market. The market did find support at the 1070 area and moved up from there once it got it’s footing back. Over the next few days expect the market to continue to chop around. It looks like we may be in a range here between 1070 and 1125. I don’t see anything exciting about to happen over the next day or two. Happy Trading.

By John Pisanchik

I have held off on a commentary this week because there were some things the market needed to resolve. There was definitely a short term uptrend happening and a severe downtrend being broken. I recognized that there was going to be some chop to the market so I held back on my opinion, letting my last analysis stand. That was that the market was trending up on a short term basis. There was a very strong resistance level at 1025 and that held. However, instead of the market falling apart, it consolidated and today experienced a reversal. This is positive for next week. Happy Trading..

By John Pisanchik

Well this week was important. Talk about walking away from the grave, that is exactly what the market did this week. The market has been incredibly bearish and looked like it was on the verge of the next major leg down. For what ever reason, the market found support and moved higher, and in a significant way. Caution is still the mantra, however this market did come back from the dead, which should make the shorts scramble. The market has not seen the type of volume that is has been seen a couple of years ago, which means this is still a cautious market to navigate, and significantly fewer players. This means that trends can change very quickly. But for now, the market looks like it wants to go up. Don’t fight it short term. I am not convinced this is a long term trend. If fact we may be range bound. Time will let us know that once we retest the 1100 level in the S&P 500 Cash index. Enjoy the weekend and Happy Trading.

By John Pisanchik

Well the rally came to an end when the S&P 500 Cash Index hit the wall at 1099 on Tues, Wed and Thurs. Today’s drop puts an end to the 2 week rally. During this rally, the bulls were sucked in and today is a testimonial to just what the bear can do. I would expect this weakness to continue next week and we should see a test of the 1011, which are the lows set about 2 weeks ago. Have a great weekend and happy trading.

By John Pisanchik

The market continued to demonstrate some strength here but caution is still the keyword. Volume has not been real heavy in this rally, which means there is not a huge following, and we are fast approaching an area of resistance. That area has 3 major resistance points and are 1089, 1100 and 1115 in the S&P 500 Cash Index. Bear them in mind as the market moves higher. Happy Trading

By John Pisanchik

This week the market found support at the 1011 level in the S&P 500 Cash Index and rallied each day. I am still bearish, however this rally has moved upward rapidly but  it has been on reduced volume. That is a red flag indicating this is simply a short covering rally. There is major resistance at 1089 and could potentially stop this rally. If it cuts though that resistance point, the market should trade towards 1115 in the S&P 500 Cash Index. If you are long, beware a rapid turn around. Happy Trading.

By John Pisanchik

This past week was a very important week in the market because some very significant things occurred. First, the market broke below the 1050 level in the S&P 500 Cash Index, and stayed below that on a test. Second, it continued lower and hit a significant support level at 1011, bounced from that and held for at least a day.  This new week will let us know just how sever the downswing will be. The signal will be how it continues to react to the 1011 level. It is a significant support level, so if it goes through it rapidly, then the next objective of 942 will be met pretty quickly. So the market may chop around a bit just above the 1011 level. A close below that is a signal of continued weakness and a most probable move to 942. Hope you had a great Holiday weekend, and Happy Trading.

By John Pisanchik

Today’s market provided a small bounce early in the day to retest the 1050 level as a resistance point. The high was 1048 so the resistance came in on schedule. After that held, the market stayed in a very narrow range with the move on the day coming in during the last 30 minutes, closing at 1030.7 in the S&P 500 Cash Index. The next leg of the bear market has started, as far as I am concerned.

On May 26, 2010 I wrote: If we close below the 1050 level then the next real support level will come in at 1011 and we could see some form of bounce there. If that level does not hold, the next support level is 942. The 942 level is another very important point and could provide strong support even in a market like we are experiencing now.

I still hold this analysis as the most likely objective. The next leg of the bear market is here and I believe 942 is the objective for this leg. The variable I cannot predict is how long it will take to get there, however bear markets historically have rapid moves. Happy Trading