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.

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

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

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.