Stock Market Commentary

Stock Market Commentary - Looks to me that the market is running out of steam. The SPY is hitting resistance and much of the earnings catalyst that has driven the market up is over. If we don't breakout above the the 87 area, expect a pullback to 82 area.

If the market breaks out, a short covering rally will probably happen driving the market up to 92. If the market rolls over, bears will apply pressure until support at 82 is reached. That would form a higher low and it would be intermediate-term bullish. Either way, I believe the downside risk is relatively contained.


The SPY broke below the trend line a few days ago. Now it is rising to test it as resistance.

I think we should take a cautious approach at this juncture to see if the market rolls over or breaks out.