S&P 500 Morning Analysis 11/6/09

The SPY made it right up to the VWAP (not shown) of the entire trading period from the October low and the location of prior resistance just under 107. The 50% retracement of the recent decline is also found ~10668 which left yesterdays close in an important level. This morning the market is selling off and is testing what should be first support near 106.10. Below this first level, the next levels of potential support are 105.40, 104.65 and 104.13. If the market can erase the early losses, the 107.00 level should be resistance, followed by 107.40 and 108.00