SPY Levels and Analysis 9/27/10

When the market doesn’t do what is expected, a violent move in the opposite direction often occurs as more participants are trapped with losing positions. On Friday the majority of participants were looking for a fairly quiet day, but the gap up through113.60 had short sellers on the run and the momentum sucked in money from the sidelines for fear of missing out. 113.70 will be a level of focus as support early in the week and if that fails to hold, then 112.00 is the bigger level below. The market has also been doing a good job of holding above the 200 DMA which is now found at 111.92. Above the market, the near term resistance is found at 115.00 and then near 118.