After finding support at the rising 5 day moving average on Friday’s gap lower, the SPY has followed through nicely on the upside.  We now find the SPY at the most recent significant level of intermediate term resistance near 110.50.  These two timeframes (65 min on left and daily on right) show there to be three significant areas of interest (potential resistance) just above us: the December 31 low, the declining 50 DMA and the 61.8% retracement of the 2010 high to low range.  With these three levels just ahead and the declining volume of the last couple of days, extra care should be taken to protect long side gains and to raise defensive levels in general.