S&P 500 Levels & Analysis for 6/16/10

On Tuesday Spy gapped higher and climbed steadily higher throughout the day.  The rally brought the market back above the rising 200 day MA, above the 38.2% retracement of the range for the year and above the VWAP from the 5/4 break of support at 118.50.  We will now look for the 111 area to be an important level of support if the market is going to be able to add to the gains.   Short term, the market has gotten extended and a pullback to test the pivot at 111.40 would be welcome tomorrow.  The missing ingredient from this rally continues to be volume, but only price….  The next technical level significance for potential resistance is the 50% retracement of the range for the year, this level is ~113.35.  Above the 50% retracement level is the declining 50 day moving average which is currently found at 114.59