Saturday, May 23, 2009

SPY Talk

Clear range is setting up in the market with support at around 88 (875 on the S&P) -- if that goes then watch for a move to the 50SMA-- and major resistance on the SPY at 93-94 (and 200 SMA). Within that range we have now a c lear minor resistance at 90; a high-volume close above 90 could rally us back to resistance zone in a hurry.

No predictions as to which direction this small range (88-90) will break but we'd prefer a move down to the 50SMA to give this potential March bottom a broader base and more backing and filling.

Point A is the trend-line that we broke and keep visiting from the other side. Point B is support, and Point C is resistance.