By John Pisanchik

The Market has continued to move sideways in a narrow range without any ability to move higher. I am putting out a word of caution because of a Fibonacci Point that was hit on Dec 4, 2009. This point is a half way retracement from the Oct 2007 high 0f 1576, in the S&P Cash Index, to it’s low in March 2009 of 666.79. (Interesting number!!) We have been in a range for a few months now and that is an indicator of the market losing steam. Couple that with the Fibonacci Point and there is reason for concern.

This week coming may not be very exciting with the Christmas Holiday. I don’t expect any surprises this week, just the same lack luster trading. Merry Christmas and Happy Trading.

By John Pisanchik
Today was a disappointment. The market did rally but met resistance at 1119 level in the S&P Cash index, and was unable to make new highs from the current range. This could also be viewed as the 3rd top at these levels. Makes for a very cautious market. This intraday reversal may cause the overnights in Asia and Europe to sell into this on Sunday night. In any case, we are still in a range and will now probably test the 1100 level to the downside. Happy Trading.