S&P 500 Levels and Analysis for 3-10-10

The SPY had a wild day on Tuesday as it experienced a gap lower on the open and then recovered to within 14 cents of the intraday high of the year .  The phrase “volatility peaks at short term turning points” comes to mind with this action.  There is still no evidence that the market has made any top, but due to the volatility and extended nature of the current rally, your guard needs to be high against further volatility.  Short term resistance remains at 115.00 and 115.13 and above that we would look to daily resistance levels (based on pivot analysis) and then 115.94 which is the extension level outlined on Monday.  Support levels for the stock should be found near 113.85, then 113-113.10 and 112.55.