Market Update

You tune into CNBC or you look up your favorite stock on the internet and see that many stocks are currently in the green today. Those of you that have been with us for a while understand why we do or do not take trades. We wait for the conditions to be in "our" favor. Today is not in our favor. If you look at the S&P 500 chart shown here you will see that the market is running right into a significant resistance level. And more importantly this level failed to hold back in early August which makes it even stronger the next time it is tested.

With the market so close to a large resistance level and the odds of a pullback are high then why would we want to take on new long positions under those circumstances.

Currently the market is not able to break this level today. Each advance is being met with an equal amount of selling which is holding the market from moving any further.