By John Pisanchik

The market got a bounce here with support coming in off the 20 day moving average and is now sandwiched in between the 50 day (1108 level) and 100 day (1096 level) moving averages. The market has not yet validated that it will go higher from these levels mainly because it has not moved much above the 1100 level on the S&P Cash Index. That is a very important resistance level and, once broken to the upside should move rapidly away from it to the upside. This has not happened, closing at 1104.49, and as a result makes me suspect of a continued rally. The market activity in the early part of the coming week will confirm the rally, or not. So at this point the call is to wait and see what the market does on Monday and Tuesday.  In the mean time, enjoy the weekend. Happy Trading.

Filed under: Market Opinions

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