Market Continues to be Choppy

Friday saw aggresive moves, as the market opened lower and rallied furiously…only to finish the day basically unchanged.

The lows of the day came very near the short-term upward trendline, showing there is still support above 1070, as the S&P 500 hit a low around 1088.  The trendline crosses currently at 1086.

The stifled rally early this week shows signs of weakness.  From the rally off the bottom, 1010.91, if this were infact going to turn into a broader advance the wave higher we saw from the middle of the month should have extended further.  The fact it couldn’t indicates that we are lacking steam. The bounce off the bottom, the pullback, and then a resurgance higher should have brought additional buyers into the market, not to mention some short coverings.  That did not materialize.

Yet, the fact the market stayed above the support levels must also be respected. Primary support is at 1055 (just above), but a close next week below 1095 would provide some early indications the advance is in trouble.  Some additional support comes in at 1070-1062.  Failure to hold there means a highly likely re-test of 1056 and a further slide from there.  The 1055 can be used a pivot point – trading drops below it for further downside, but also watching for false breakouts (trading moves back up through it) due to the choppy nature of this market and the large intra-day moves.

Below 1055 little support comes in until 1033, 1016 and 1010.  The average (14) weekly range for the S&P is 59.55 points, and the market closed at 1101.60 on Friday.

A further advance is indicated by a move above 1122.  A former swing high lies beyond at 1132.  Pushing beyond this area clears the air, at least technically, for the market to run.  Minor resistance is at 1140, with more significant resistance at 1156.

Chart is below.

Have a great weekend!

Cory Mitchell, CMT

And while you are enjoying that weekend, check out this video if you haven’t already…

I have to admit, this is a little weird.

It’s a video that reveals a story about the #1 reason why most people lose money trading stocks…and how the “story-teller” himself was ultimately able to help those people make a life-altering “shift” in their trading.

Why do I say it’s “weird”?  Maybe because it’s about stuff most people are afraid to admit about themselves & their trading. Check out this “weird” stock trading story here:

http://www.stockmasterymaterials.com/y/?u=2&i=1083859&l=f1

As you immerse yourself in the story, see how close it is to YOUR trading story…

(pay close attention)

Good Trading,
Cory Mitchell, CMT

p.s. Do you think it’s “weird”?

http://www.stockmasterymaterials.com/y/?u=2&i=1083859&l=f1

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