S&P 500 Morning Analysis 10/21/09

Buy the rumor, sell the news? That was the case in the semiconductor stocks last week and now the broader market is weakening a bit with the release of more corporate results for the 3rd quarter. The uptrend remains intact, but with continued under performance in the important SMH and XLF sectors, a heightened sense of risk awareness seems prudent. Pre-market there is mild weakness and the most important level of intermediate term support remains 108.00, with minor levels at yesterday’s low ~108.70 and then 108.25.