Editor's Note:

Unfortunately not much has changed since last week. Stocks are still overbought only instead of the S&P 500 up +6% in September we're up +7%. If you look to the August lows the S&P 500 is up +8% in about three weeks. We really don't want to chase stocks here. The S&P 500 is facing heavy resistance near 1130. Meanwhile the small cap Russell 2000 is still under performing. Plus the financials, which have seen a significant bounce, are still trading with a bearish trend of lower highs and lower lows.

I am optimistic about the four quarter. We are looking for a bullish entry point somewhere in the next six weeks. Odds are we won't see the entry point until we get to October. We did have two stocks make the jump from watch list to play list last week and I've added two more bullish candidates but we're still looking for a correction first.