With only 132 million shares traded on the SPY, the market basically went nowhere.  Nothing has changed since the March low from 2009, as light volume still rules the market.  Ever since the cap was removed for the PPT, they have easily been able to keep the market flat to up on every light volume day the market has.  Of course the market has always been controlled to some degree, but when you now have an unlimited supply of free money, the control they have now is the highest it’s ever been.

As much as I’d like to see a nice sell off, it’s not coming until the big institutions decide to sell… it’s really that simple.  The technicals didn’t really change much today, as we are still over bought short term, but we can still go higher medium term.  However, I’m still looking for a small pull back later this week, but I’m not expecting too much.

Don’t take this wrong, as I’m not bullish by any means… but I’m not bearish right now either.  The market is being propped up, and I’m not going to fight it… as I’ll lose.  Here’s an interesting video by my favorite president (I wish)…

For this week, it will be important for the master resistance at 112.00-112.50 to hold the bulls back.  If successful, then a pullback could start as early as Friday.  What I’m looking for, is for the adx line to bottom out, and start to re-cycle back up, with the negative di line leading the way.

Now if the 112.00-112.50 level fails to hold back the bulls, then we should see a move to 115.00 area for a double top next week.  I know that’s not what you’re looking to hear, but we are in a sideways market right now, that could break either way.  I’m going to remain neutral for now, and hope that 112.00-112.50 holds for the entire week.  I believe that if the level does indeed hold… for the entire week, then next week will be down.  Can the bears hold back bulls?  Only time will tell, as the market is just trying to put the bears to sleep right now.  Once they are all hibernating… the market will sell off.  Isn’t that just the way it works?

Red