By John Pisanchik

The last couple of days, the market has been marking time, after the great break out of the 955 level to the upside. The market will need to digest that break out, and as long as it holds the gains, it should move higher. We  are in the middle of summer, so we may continue to mark time until vacation season comes to a close. I will not be updating this every day unless something significant happens. The near tern should continue sideways for a little longer. Happy Trading.

By John Pisanchik

The market today broke out of the double top and held it’s gain. With a close of 976.29 on the S&P Cash Index, the market is now poised for a rally that can go significantly higher. There is a possibility that the market may test the 955 level over the next few days, however if there is no test, the market can have an explosive rally. A short term objective is the 1000 level in the cash index. Depending on the strength of the market we could see that tomorrow. Happy Trading.

By John Pisanchik

The market marked time in today’s session and did not break through and hold above the 955 Level in the S&P Cash Index.  This is an important level because the market is at a double top now and any market hesitation could spark a reaction lower. Therefore it is important for the market to move higher fast. If it hangs here too long then a trading range will have been defined. The trend following indicators are contradicting themselves so there is no clear trend upwards at this point. Happy Trading.

By John Pisanchik

The market continued to rally as expected, to a high of 956.53, with a close of 954.58 in the S&P Cash index. This puts the market at a double top from a technical perspective, so today (7/22) will be very important since if it hesitates, sellers could come in to move it lower. I am still looking at the 2 possibilities for the market. One is that the 955 level does not hold and the next leg of the rally starts, and second, the resistance level here holds and we have defined a trading range with 885 on the bottom and 955 on the top. Today will give more clues to that. Happy Trading.

By John Pisanchik

The market continued it’s rally to close at 940.74 in the S&P Cash Index. There is overhanging resistance at the 955 level. With the strength that the market has been demonstrating, it is very possible to see that level today. Once we get to there, the market will let us know if it will be a double top and start to pull back, or start a new leg upwards. Happy Trading.

By John Pisanchik

Today was a significant rally that may have reversed the market. It was significantly stronger than expected and at this point there are 2 likely directions for the market. The first is that the market is not going up or down in any real way and is in a trading range. That trading range is a large one with 885 on the bottom and 950 on the top side. The second option is that the rally will continue and the next leg will begin. This will be more the case if the S&P Cash Index trades and stays above the 955 level. If that occurs, we should start trending higher.

In this market, expect the unexpected. Happy Trading.

By John Pisanchik

The market closed at 905.84 in the S&P Cash Index, holding the 900 level, while staying in a narrow range.  That is not always a positive indicator.  Tomorrow the market may head higher again, however there is stiff resistance at the 911 level.  I am not looking for any significant upward movement. Happy Trading.

By John Pisanchik

Today the market had a good rally which got us past the 885 level and throughout the 900 level to close at 901.05 on the S&P Cash Index. The 900 level is a strong resistance level and since the close was at 901, I consider that the market is right on the resistance level. If this is the real deal to the upside, tomorrow we need to see the market keep moving. There is still important resistance at the 910 level also.  The next day or 2 will let us know if the market is strong enough to keep going. Happy Trading.

By John Pisanchik

This week ended decisively down. The market internals deteriorated each day and the indicators are all pointing down. At this point you should be positioned to take advantage of a down market. The short term objective is the 845 to 850 level. On an intermediate basis, we could get to the 750 level. A lot of damage can occur to individual issues in an environment like that, which is why I am saying that you need to be positioned for it.

I would expect that next week will bring more momentum to the downside and some exceleration to the downward progress. Happy Weekend, and Happy Trading.

By John Pisanchik

Today the market stayed in a narrow range with weakness coming in later in the day. The 885 resistance level held in the S&P Cash Index, so you can look at today as a continuation of the test. The Momentum is pointing down and it is a matter of time before the market starts to break to the downside. I am still looking for a short term objective of 845 – 850.  Happy Trading