S&P 500 Morning Analysis 12/8/09

The SPY continues to trade in a boring range with brief periods of intraday volatility. The market has been finding support along the rising 20 day moving average (green) and that moving average is also where we see the uptrend line from the early November low. This level also lines up approximately with the midpoint of the range near 110.40, breaking this level tomorrow could bring about a move down towards the 109 area. Resistance remains near 111.80 and breaking above does not assure the market will continue higher as the last 3 breakout attempts were rejected. The best plan is to continue to keep expectations low until we get a resolution of the consolidation.

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