S&P 500 Morning Analysis 9/15/09

The SPY gapped down through prior resistance yesterday but impressively recovered very quickly as the market is seemingly immune to any news which is spun as negative. The wall of worry is a strong wall which is not easily penetrated. Eventually some stronger and sustained profit taking will come to the market, but now is not that time, as the uptrend remains firmly intact. Some of the levels of interest from the daily timeframe come from late Sept – early October of last year, those levels are labeled on the chart above. It is interesting that the SPY is still 12% lower than where it was 1 year ago today after the 55%+ rally from the March low.