S&P 500 Analysis 8/26/09

The SPY made a higher high yesterday but the upside action was uninspiring, the market seems to be tiring here but there are no signs present of a breakdown.  The support mentioned yesterday at 102.50 will be a level of focus once again today, failure of that level could be the catalyst for further selling down to 102 and then 101.  The market still shows a pattern of higher highs and higher lows so cautiously optimistic seems the right stance here until the market tells us otherwise.