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Market Moving in Range

The Cars: \"Moving in Stereo\"

When I decided to write about the market moving within the range we’ve noted here over the past few weeks, The Cars song Moving in Stereo flew threw my head. I know many of you reading this weren’t born in 1978, but that was smack dab in the middle of High School for me, so I remember it well.

At the link above is a live version of the song for those of you who are too young to remember it or haven’t enjoyed it in a while. I think I’ll drop the CD into the player in my car for the drive home – good Summer evening cruising music!

Anyway, I’ve update our favorite chart. You can see that we tested the support at the 200-day moving average and it held. We are now moving back toward the 950 resistance level. Given that it is quarter-end of a holiday shortened week, it is possible we could hit that resistance or even break through it. However, we need some catalyst to move this market up to the 1050 level – that is what I am working on this week – trying to figure out if there is a catalyst or whether we are going to be in a range-bound correction for a few more weeks. Corrections serve to work off overbought situations and they come in the form of a price correction or a passage of time within a range. We are surely in the latter.

spx-2009-06-29

Enjoy the video and I’ll keep you apprised of the markets movements (in stereo or otherwise).

Mark