S&P 500 Analysis for 12/10/09

The SPY found support right where it was supposed to at 109 and then experienced a rally back up to the middle of the range. If the market can climb back above the mid point and the 5 DMA (~110.50) then a move back up to the top end of the range seems likely. Range bound markets are usually resolved in the direction of the primary trend (higher) and it would take a move back below 109 for intermediate term bearishness.