Technical Analysis of S&P 500 for 1/8/10

The SPY briefly dipped below 113.50 on Thursday but found anxious buyers who quickly took back control.  The strength of the SPY is being helped by the recent out performance of the financial sector (XLF) which are up 6.2%YTD and relative weakness of the Nasdaq 100 (QQQQ), up 0.92% YTD is worth noting, but the Qs also remain in a solid uptrend on the daily timeframe.  Right now, the biggest level of near term support should be found ~113-113.25 and the 2008 levels near 116 offer the most likely area where sellers may offer some supply.  The trend is getting extended so newer purchases should be kept to stocks near bases rather than chasing the ones which have had bigger runs recently.

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click chart to enlarge