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

The market moved higher today but did not make any real progress to the upside over the last few days. It will continue to be choppy as it digests the move through 1000 in the S&P Cash Index. Be patient, it could be like watching paint dry.

I will be at a conference in St Louis, and will not be updating this commentary until Monday, 8/17. Happy Trading.

By John Pisanchik

This was a good week for stocks as they continued to move higher. Friday we reached the target of 1010 in the S&P Cash Index, which I called for on July 31, 2009. The index closed at 1010.48.

The coming week should see further progress upwards. I believe that we are in a new leg of the rally. There is a band of resistance here, between 1010 and 1030, so some choppiness may be seen here. The market may also want to test the 1000 level again. Overall, the market is positive and should maintain an upward bias. Happy Trading.

By John Pisanchik

The market is still digesting the move up above 1000 in the S&P Cash Index. This will continue, however, we could see a pullback to the 960 level. So patience is the key at this point. The market held up over the last few months so it should not crash and burn any time soon. Happy Trading.

By John Pisanchik

This week was a great week in the stock market. The break out of the 955 resistance level was confirmed and the most probably move is continued upside progress. I don’t think it will be a roaring bull market. It will most likely be a market that drifts for a few days, then has a spike, and drifts, and on and on. This could create a bit of a boring market, and one that creates false signals, as we have seen in the last 2 months. In the near term, we should get to 1010 tn the S&P Cash Index. Here there is a layer of resistance between 1010 and 1050. Once we get to 1000 it will probably get a bit choppy, and I am sure there will be false signals as a result there. Right now, my momentum indicators are pointing up. Happy Trading.

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.