S&P 500 Morning Analysis 9/16/09

Higher highs and higher lows, where it stops no one knows. It seems as though anxiety is building with higher prices as people shake their heads and wonder how high the market can go. It can be difficult to trust price action when “common sense” tells us the market is “overextended” but the path of least resistance remains higher and those who are fighting it are fighting a losing battle. As always, the emphasis should remain on risk management. Trade each stock on its own merits and plan your exit strategies in advance so you are not surprised by a surprise selloff which could come at any time. The market remains above its rising 5 day MA and it is rapidly closing in on the gap levels from early October of last year, those levels are 107.62 and 109.68