S&P 500 Levels and Analysis for 8/4/10

On Tuesday, the SPY experienced some short term profit taking after the powerful move up through the 200 Day MA on Monday.  The first level where we were looking for support at 111.80 was tested and that level did hold.  If the market can remain above the rising 5 DMA (orange line) then odds of a test of the Jun high of 113.20 is likely.  Above 113.20, the market should not encounter any heavy resistance until ~115.00