S&P 500 Levels & Analysis 7/9/10

The market made what we can now consider to be an important intermediate term higher low at 105.90, this level also coincides approximately with the 38.2% retracement of the 6/21 high to the 7/1 low.  It is also interesting to note that the VWAP from the 6/21 high through yesterdays close is ~106.15 which can be loosely interpreted that the average long participant is making money above that level and the average short position is losing money above it.  The gap from 6/29 is the next upside level which will be the focus of many traders, that level is 107.53 and above that its the 61.8% retracement of the range which is ~108.63.  The market is carving out higher highs and higher lows above a 5 DMA and until that pattern is broken, the buyers remain in control of the intermediate term trend, but it comes in the context of a larger downtrend on the daily timeframe which makes it difficult to trust.  While we have mixed messages from various timeframes it remains a traders market.