Yawn. While it has been a slow road today, the market has thus far survived the tests previously discussed and congregating around the 4225 – 4227 area. Investors traded only 14 contracts on the S&P 500 at the 4221.50 low, which could be the low of the day.

Perhaps there will be some action at the close, but nothing is resolved. The market remains in balance and largely in the same value area as the past week. Tempo is slow, internals are mixed, and that won’t drive a trend.

There is a nice “V” off the lows and into the 4228.30 settlement from yesterday. With another small dip forming a right shoulder, we may have a long trade before the close. I did take a nice short off the 4236 area this morning, but my confidence level was not high enough to convey it. I used two micros and made $50. Again, yawn.

I would take a long trade if it presents, but I want to be out for the last 30-minutes of trade on a Friday. I think it is up to the bears to press their case here. We can criticize the breakout failure, but we have not broken down either – at least yet.

Stay tuned,

A.F. Thornton