LOOKS LIKE WE'RE WAITING

I said yesterday that if we moved above Wednesday's high (1077.74 on the S&P 500), we would probably have a bit more correcting to do. Well...we're above 1077.74. The likely movement is a rally up to the 1100 to 1115 area to retest that resistance. The market is in a range right now between about 1100 and 1040. We might not have to wait very long. We are only 14 S&P points from 1100. We could hit that tomorrow. If the decline starts after that, we could possibly break below 1040 in the middle part of next week. Many of you have e-mailed me with concerns about your July options. I think they are still fine as long as this market doesn't continue too much longer in this sideways range. If they are still underwater by expiration Friday next week, we could look to roll them out to August. I know it's been tough to be patient, but sometimes the market will get caught in these sideways corrections before the move comes. There is really no way to perfectly predict when the move will take place. We can only analyze the probabilities. I will say that the technical condition of the market is still pointing to the downside...despite the near 300 move up today. If I see any change to the bearish outlook, I will make sure I post it on the blog. Watch for the 1100 to 1115 area tomorrow. If we happen to move below today's low, the strong expected downside move will be back on the table....although it would still need confirmation with a move below 1040. Have a good weekend.