S&P 500 Morning Analysis 11/30/09

The market experienced a large shock on Friday and staged an impressive intraday rally, but it was still wounded and we will need more time to determine whether it can fully recover. The prior low near 108.75 was violated but the market found buyers at the location of the 20 day (green) moving average and the approx location of the 38.2% retracement of the November low near 103 to the November high. Friday’s low will mark an important intermediate term level of support that if broken would lead to a move back below the important 108 level. A close above 110.50 today would be a good step for continued recovery