S&P 500 Levels & Analysis 6/11/10

The SPY rallied up to the highs made after the gap lower last Friday (June 4) and also encountered the downtrend line we have been observing in the 109.30 area.  A push up through 109.30 would likely lead to continued strength up towards the top end of the recent range near 111.06.  The larger downtrend continues to make rallies difficult to trust for more than a daytrade and the lighter volume of the last couple of days casts further suspicion on the sustenance of the recent strength.  We will look for support near 108.65 and then 107.70 today.