S&P 500 Morning Analysis 10/15/09

The SPY gapped higher and continued strong throughout the day on Wednesday. The market is rapidly closing the October 08 gap, trading at 109.68 will officially “fill the gap” It looks as though we may have to wait for that gap to get filled as the SPY is trading at at 108.45 (down 0.75 from yesterday close). The most importantlevel for this market to hold on a closing basis today is the prior resistance at 108.00, a dip below that level intraday would get attention, but a close below it would be reason for heightened caution.