S&P 500 Analysis 12/17/09

The SPY made it up to the high end of the range once again and then sold off after the Fed announcement on Wednesday. The good news is that the 111.30 level held as support, the bad news is that we remain stuck in the range. The market also found support along the rising 5DMA and now we have the best near term support level near 111.00 which is also the approximate location of the rising 10 DMA. A break of the 111 would be reason to look for further downside to the 110.20-110.50 level, while a move above 112 could lead to upward momentum.