AS&P 500 Morning Analysis 9/1/09

Pre-market, the SPY is testing the 102 level once again and with this being the third test of support in 4 sessions, there is a strong possibility that it will be violated and the amrket will continue down towards 101.  The support at 102 is also ~38.2% retracement of the move from the 8/17 low to the 8/28 high, the other retracement levels are shown in the table above.  Short term resistance should be found near 102.50, also of note is that rally attempts typically faill below a declining 5 DMA.