S&P 500 Levels and Analysis 5-10-10

The markets are gapping significantly higher this morning as the recent volatile and dangerous conditions continue to make trading difficult. This mornings strength has pushed the SPY up to the 61.8% retracement of the year high to the recent low (not show on chart) This level is also the approximate location of the declining 5 day moving average and it seems like the morning high of 116.69 will not be exceeded during the regular session. This market continues to show why it is so important to remain open minded and nimble. Volatility will have to settle down over the next few days before the low risk opportunities reveal themselves, meanwhile aggressive daytraders should be able to find good intraday opportunities.