After breaking through the 111 level which was; prior resistance, the location of the 200 DMA and the 38.2% retracement of the year range. the market held that level as support. This morning, the SPY is trading right at the 50% retracement and above that the market will have to contend with the declining 50 DMA at ~114.19 Retracement levels and moving averages are merely “potential resistance levels” the job of a trend trader is to monitor the action on short term timeframes and look for evidence the trend is weakening. We will now look for the highs of last week in the 112.20-112.45 area to be support on pullbacks, followed by 111.00.

11:40 AM Eastern, please note pivot numbers were incorrect and they have been updated on the chart.