S&P 500 Levels & Analysis for 3/23/10

The SPY gapped lower and staged an impressive rally from the January highs and  then held above the rising daily VWAP all day on Monday.  The test of  115 adds further significance to that level for support going forward.   The rally fell short of prior support near 116.80 although that is just a short term level with little significance beyond a day or two.   All of the moving averages remain in an uptrend and beyond 116.80, the next level of potential short term resistance is the recent high near 117.50.  As extended as the market seems, the buyers keep showing up and that makes life very difficult for short sellers.