One week ago the market was closing in on breaking down below S&P 500 1225. It failed to hold the breakdown once it occurred as the bears just couldn't find any momentum once the level was taken out. A slow grind lower ensued, with the bulls, eventually, holding the line in the sand. Here we are with the bulls trying to press through massive resistance between 1260/1657. You need a gap up and out to confirm the move, so we'll be looking for that on Tuesday when we open for trading once again. The bears choked big time when they had their chance, especially since they actually broke through key support at 1225. Now, the bulls are on the precipice of breaking through their major headache resistance area. Let's see what they can, or can't, do with it.

The week was favorable seasonally, and that showed up in stock movement all week. It was a nice steady move up in the existing triangle that has been driving both bulls and bears crazy for seemingly far too long. And to be blunt, it has been too long for anyone's liking. So, the bulls now have their chance, and maybe they can defy what everyone says is pretty impossible based on the global situation at hand, which, to be honest, is not very good. Next week early on will be very interesting to say the least.

This market is even more interesting than usual, because of the near breakout, yet, many leading stocks are acting very poorly, such as, International Business Machines Corp. (IBM), and many, many others. Far too many to mention. Normally, you'd think that this would be a negative for equities overall, but it isn't. The market is split up into many different little bull and bear markets. The best of the best is healthcare along with high dividend paying lower P/E Dow stocks.

The worst has been the commodity world along with a high number of technology stocks. Financials have been improving, but are essentially nowhere, while the same could be said for transportation and retail stocks. Bifurcation, such as this, usually leads to a continuation of the nowhere world of movement we are in currently. However, that can change quickly if more stocks start to come out of their bear modes. The bulls have the ability to do what it takes, but they'll need to get going as it would be more bearish if they do what the bears just did, and that is, to churn and grind at the breakout point. It's more than interesting here as the bulls can do what no one rightly thinks possible, and often that is what takes place in this crazy game.

S&P 500 support is at 1202 now, massive resistance at 1260/1267, and then 1292. If we get above 1292, we can start thinking about S&P 500 1325. That would set things up quite nicely for the bulls, if they can get the appropriate back test of 1260/1267. That's putting the cart before the horse. Not to worry about for now. Let's just see if the bulls can blast through 1267, and then 1292 before worrying about 1325. With the dire news from Europe, it's hard to imagine a bull-market scenario setting up. But our job isn't to play with our heads. Our job is to adjust to the message being sent out, and ignore what we think is right and wrong. Play what you see. It's as simple as that. A huge week is coming up for the bulls and bears alike. The bulls will have their chance. The bears are teetering on the edge.

Have a Happy Holiday Season...

Peace,

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

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