Market hit the ceiling

The markets are running into resistance and each time pull back. Not enough strength yet to move any higher. This may be picked up by the bears as they catch the scent of a 'stalled' rally and may come in at the end of the day and start taking more profits off the tables. There are some good gains in some stocks today but they can't seem to go any further. Little bit at a time is better than nothing. Each day that we can close above the previous day is an upside closure. And a good technical indication. But we still have resistance overhead causing us troubles. We will pullback again, maybe not today but soon.

If this is only going to be a market pullback (and not a bear market) then there has to be some pullbacks in order to consolidate and then make another run at the door. What we watch for is the failure of a break through resistance and then pullbacks that are lower than the previous. That signals more than a market correction is at hand.

American Home Mortgage (AHM) just announced that they can not locate funds to support their lending obligations. Looks like AHM will be the first mortgage company to possibly go bankrupt over the sub prime debacle. This news may now weigh on the financials again this afternoon and bring them back in.