S&P 500 Levels & Analysis 3/29/10

The market gapped higher on Monday and then traded in a narrow range for the rest of the session.  Boring as it may have been, it was constructive as the SPY is back up to the 117.50 level and a move back up through there is likely to get the recent shorts to reconsider their bearish bets.  Above 117.50, the next potential resistance area is last weeks highs near 118.  Levels we will want to see hold as support on pullbacks include 117.00, 116.60, 116.10 and then the biggest level of intermediate term importance remains 115.10