S&P 500 Morning Analysis 9/17/09

The current rally shows no signs of tiring but with an absence of any significant levels of potential support well below current prices, the market is stretched and new purchases become riskier. There are still stocks which are not so far extended from bases and those ones offer the best risk/reward in this environment. The market is rapidly coming up to the gap levels from last October and that is a potential area where the rally will encounter selling.