S&P 500 Analysis for 1/12/10

The SPY gapped higher and found sellers near the 115 level on Monday and then traded down to the prior level of resistance from last week near 114.25 before the buyers were able to regain control in the afternoon. 114.25 now becomes the more important near term support for the market and if that should fail to hold then we will look for trendline support near 113.75. The market seems to be tiring a bit after closing higher everyday in 2010 (6 days in a row) but the trend remains higher means short sales only make sense for the most aggressive traders on an intraday timeframe.

click chart to enlarge

Subscribers- tonight’s webinar will be recorded and available under the premium tab at approximately 10PM Eastern.