Market Comment - S & P 500 Index (1275)

Many of the stocks, indexes and commodities that I follow continue to struggle beneath their 100 or 200-Day Moving Averages. In most cases, my work suggests probable failure to break out above resistance.

In my August 1st, 2006 Market Comment, I said that the S & P 500 Index might have enough short term strength to push up through its 100-Day Moving Average. It did break out last week, but this still wasn't good enough.

In order to call for an end to this market correction, I need to see a large number of stocks and indexes looking perky, and it simply hasn't happened so far. We are snarled up under moving averages right now, and I'm watching closely for a clue to the direction of the next important market move.