S&P 500 Morning Analysis 11/17/09

The SPY is trading down to yesterday afternoon’s low (110.84) which is also a prior peak on November 11. Below this first level, the area of potential support should be found near the prior level of resistance at 110, which is also the location of the uptrend line. The pattern of higher highs and higher lows has not been violated, but we need to be aware of potential support levels if the market does see further profit taking.