By John Pisanchik

Hello everyone. I wanted to post this update, because I think the market may be coming to the end of the rally. Of course anything could happen, but the market does appear to be losing steam. In addition, the rally that started with the March 6, 2009 low (S&P) of approximately 670, broke trend on April 20, 2009. Now, what I need to see, if this is really a strong market, is for that broken trend to get re-established in the next day or so. That means the Cash S&P needs to get above the the 850 level and hold it. If it does not, then the next direction will be down, probably testing the lows set on March 6, 2009. There are some levels that could provide some support and they are: (S&P Cash) 835, 830, 790, and 741. After 741 it is free and clear for a straight shot to 670.

Well, that’s it, have a good trading day.

 

Regards,

John Pisanchik

Filed under: Market Opinions

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