S&P 500 Morning Analysis 12/16/09

After rallying to the top end of the range which has contained the SPY for the last 5 weeks, resistance was found once again just below 112. The market fell down to the rising 5 DMA late in the day and then closed right on the level we were looking for as potential support at 111.35 I think this action is driving most people a little crazy but I am still optimistic as we now have the 5DMA > 10DMA > 20 DMA and there is a short term pattern of higher highs and higher lows over the last week. The longer term uptrend also remains intact and if the market can hold above 111.00 tomorrow the odds continue to favor further upside.