Good Company In The Stock Market

As I feared, the S&P stalled yesterday and rolled over. But it didn't get very far. So even though it can't get a bounce going. it can't seem to break either.

Futures are up again. So thus another chance exists for the bulls, while another opportunity for the bears must wait. Meanwhile the pressure builds.

I stayed on the sidelines yesterday and it was largely the right call. Sometimes it's best to just preserve your energy and wait for better opportunities -- something predatory animals do all the time.

Upside today I see the 1420 area as resistance, and a chance remains for 1428-1436 and the 61.8%  level around 1440.

Another failure risks 1396.56 and will cause the larger players to focus on the 200-day moving average currently at 1375.92.

I'd add another reason why I'm being careful with pressing the downside: volume. Ironic that during the entire rally from the 2009 lows that the only time that volume has showed up has been on the downside. Now suddenly, it's not there. The S&P has come into the up day of 9/6 with over 13% lighter volume as measured by the NYSE which I use as a proxy for the index. That's just not enough selling pressure in a market that has clearly indicated a lack of buying pressure for the past three years.

Maybe it'll head down for three years on light volume and perplex everyone. I doubt it. I'm still on the lookout for another surprise to the upside. Interestingly, Tom DeMark (developer of the famed DeMark indicator) chimed in yesterday as well. He too sees a new high . . . "out of nowhere."  I like DeMark. He's good company.