S&P 500 Morning Analysis 10/5/09

After the failure of the first trendline and then the support at 104, the SPY continued down to the trendline from the August lows. This level is also significant because it is where the find the rising 50 day moving average (currently at 102.40) The futures are showing some improvement this morning but with the market currently below the declining 5, 10 and 20 DMAs, the picture remains mixed. Rallies from this point should be expected to find reistance near the prior support at 104. Of note on the downside is the trendline from the March lows which is now found ~ 100.70