Well, the saga continues. Yesterday we told you the market was approaching a level where it was either going to have to break through to new highs, or roll over again. We pretty much got there today, so it's do or die time for the bulls. The good news/bad news is, we're at a similar inflection point with another important indicator. It will confirm or question whatever happens next with the market (though it usually confirms it). We're also going to take a refreshed look at a name we liked several weeks ago. It's been hanging in there rather well, all things considered. But, if you didn't get in then, that window of opportunity is still open. After that, a couple of the site's best commentaries and articles. S&P 500 at a Key Ceiling So what's happened with stocks in the last 24 hours? Simply put, you've seen the market reach a point of major technical resistance. For the S&P 500, that's the 1220 area where it's peaked three times since early August. In the meantime, a handful of technical indicators have swooped in and are going to be bearing down on this chart as of today. The 1234 level is a huge line in the sand. Will we be able to clear this hurdle, or is this the stopping point for the most recent rally? The fact of the matter is, it's still too soon for you, me, or anybody else to make that call. I do have a guess as to what the eventual outcome is going to be this time around though. I hate to say it, but I've got a nagging feeling this current uptrend - from the October 4th low - is almost out of gas and that we're setting up for a pullback. There are a couple of reasons, one of which is just that from the low to the high, this rally is already pressing its luck. It's the biggest swing we've seen since early August, spanning 13.3% from the bottom to today's high... in just seven days. The market's gotta' be strained here. The other reason is, as I pointed out to you guys yesterday, there's just not much volume pouring in here; we need more buyers if the rally's going to last. The other indicator I mentioned as a confirmation (or denial) tool of the market's pivot or breakout is the CBOE Volatility Index, or VIX. I'm not going to get into the whole VIX philosophy, but I will sum it up like this - the VIX shows you peaks in fear and greed, which tend to occur at major market turning points; traders are greediest at tops, and traders are most fearful at bottoms. Now, the VIX isn't always helpful. Sometimes it's just as misleading as the market simply because it's not clear if it's at a peak (fear) or a trough (greed), or just en route to one of those conditions. When the VIX and the market start to move in sync though, it's a pretty good bet that what the market is doing truly is a reflection of what traders are thinking. Clear as mud? Great. The nearby chart compares the S&P 500 to the VIX [the two obviously are inverted to one another]. Do you notice anything interesting? The VIX hit its recent ceilings when the market was hitting its floors, and the VIX hit its floors when the market was hitting its ceilings. In other words, this has been a tight enough relationship of late that we should pay attention to both of 'em together. Well, guess what - the VIX is at its floor again, at the same time the S&P 500 is at its ceiling. Coincidence? Hardly. The 'next step' here is to wait. I know, I know.... that doesn't really help you here and now. Stick with me though, 'cause something's got to happen now one way or another. If the VIX breaks under the floor at 30 and the S&P 500 can move past 1230, then the market has indeed turned the tide. It would be the first time in weeks either has gotten over those walls though, which makes it tough to expect a bullish outcome this time around ...especially when there's still not much volume behind the rally. Stay tuned - we'll be updating this outlook daily, as long as needed. Ladenburg Thalmann Financial (LTS) Rolling Again Back on August 26th we passed along an idea to you that was part technical-based, and part fundamental-based. It was Ladenburg Thalmann Financial... a small cap brokerage firm that had just completed a cup-and-handle pattern (which is bullish), and had been growing revenue quite consistently for years. Best of all though, it had swung to a profit two quarters earlier, and looked poised to continue widening that quarterly gain. I know the market's volatility didn't make it any easier for any of you to own LTS. But, for those who have held on, you've been rewarded. And for those of you that didn't get in then, consider this a renewal of my optimism. Ladenburg Thalmann shares are back above the $1.65 mark as of today, which has been a big make/break level for months now. If I had to guess - and I do - I'd say the volatility is going to persist. But, I also think we're going to continue seeing higher lows and higher highs. There's a pretty good story behind this company, and new investors don't seem to have any trouble stepping into it. You Gotta' See This Our site's members and contributors are still hard at work, putting together some of the best small cap tips and opinions out there. Here's a couple of the latest and greatest. Application software has continued to do well no matter what bombs were being dropped on other industries. Brian Prescott has three top picks for you. Yeah, General Motors may be tapping A123 Systems (AONE) to supply electric vehicles batteries, but have you really looked to see how many EV batteries GM needs? 'Conceptual investing' won't get the bills paid.