Possible Hurdles For This Market

The
market has acted healthy over the past several days. On 9/9 and
9/13, we saw above-average accumulation days for the first time since this
rally saw its below-average follow-through day on 8/18.

Even though the market is
acting healthy, it still has significant hurdles ahead. For example, the
NASDAQ’s 200-day moving average will be the first major point of resistance
about 45 points from where we stand. For this rally to really pay off the way
I’d like it to, we need to set higher highs and higher lows. In order to do
that, if the index can eclipse its 200-day MA, it will then need to break
above its prior high of 2055 and NOT undercut 1750.

Regardless of the index
action, individual growth stocks have been average up to this point. There
have been breakouts occurring, but no real money could have been made without
an exorbitant amount of risk. MBT is one of the best movers, but it
has yet to rally 20% from its pivot.

Vimpel
Communications (VIP) has been unable to do much following its
above-average volume breakout yesterday.

Dick’s Sporting Goods
(DKS) broke out on heavy trade also, but saw no follow-through today.

Playing breakouts for trades
could be putting money in the bank right now, but it has yet to produce real
riches. They have been consistent, but far from an indication that this
market is headed to new highs.

For the most part, this
remains an environment to trade in. If you are looking for the larger move,
it may be prudent to sit on the sidelines and wait for some of the above
indicators I spoke of to occur.