By John Pisanchik
The market fell below the important 1100 level in the S&P Cash Index and found support on the 20 day moving average and bounced slightly off of that. The market action on Wed. was narrow and uneventful. It was also at the top of the current range. The light holiday volume does add some volatility to the market, but the fact that the S&P’s could not hold onto the 1100 level is a bad indicator. With a close of 1091.59, there is a strong chance that the market will take another run at the 1100 level. The bounce on the 20 day moving average was a positive but next week will confirm if that has the ability to push the market higher. If the market should show weakness on Monday, look for support at the 1074 level, then 1034. That is the total range of this recent trading range. Hope you had a great holiday, and Happy Trading.

By John Pisanchik

This week the market broke through the important 1100 in the S&P Cash Index, but did not hold and fell back below it. This is a very strong resistance point and if the market has any hope of moving higher, it must break through this, and hold, soon. The market does appear to be losing steam. It has been looking sluggish for a couple of months now.
I expect the market will retry a run at 1100 again in the near term. If it does not, then that is an indicator of weakness. Friday, the market did not fall apart so a run at 1100 is a reasonable target. However if the 1100 level holds, then look for a move to 1075 very short term. Happy trading.

By John Pisanchik

Well, Happy Friday the 13th. This week ended with the 1100 level of the S&P Cash Index holding firm and not allowing for upward progress. Some of the momentum indicators are still pointing up, however, the 1100 level will need to be broken to the upside soon. If not, the market could start to break down a bit and be at risk for some move to the downside. My view is the market is losing some steam here and could move lower before it moves higher. It would not be unusual for the market to correct after it’s move from the last few months. Happy trading.

By John Pisanchik
Today’s retreat came off the heals of the stiff resistance at the 1100 in the S&P Cash Index. The market action has formed a double top here, so the key question is this as far as the market goes, and we are now looking for a stiff decline, or, are we now in a trading range? That will be answered in the near term. At the very least, we should see the S&P Cash Index go to the 1070 area in short order. There is support under that at the 1060 level, however, if that breaks, the lower end of the “trading range” is around 1025, with final support at 1014. So the next couple of trading days should be interesting, particularly Friday.