S&P 500 Analysis 8/13/09

The SPY bounced strongly from the 99.40 level and it is now back above the 5 DMA which allows bulls to breath eaiser again.   Future tests of 9940 will be important to monitor, but for now it is in the rear view mirror and the market remains in its recent range.   The high last week was 10203 and above that level the next target level is 105.53 from October 14 2008.  Pre-market trading has been very volatile and when that happens, the correct way to treat the market is to trade each stock on its own merits and have stops in place in case of reversals.