S&P 500 Levels & Analysis for 3/18/10

Much to the chagrin of those who try to pick tops in a rally, the SPY gapped higher on Wednesday and was able to hold onto the majority of the gains as the market closed at another recovery high.  The market remains “innocent until proven guilty” and seems to be headed towards the 12o level.  The “extended” nature of this rally keeps a level of nervousness alive in the bulls as they don’t want to see their profits evaporate.  As long as the higher lows continue to hold, longs are the only side that makes sense.  The short term levels to monitor for support are 116.70, 116.00 and 114.65