SPY Levels & Analysis 9/29/10

After an early test of the important 113.20 level on Tuesday, buyers immediately stepped in and regained control of the market.  The battle above the 113.20 continues to be a hard fought one and for now, the buyer remain in control.  Yesterday on twitter I mentioned how it was nice to be in an environment which isn’t held hostage to every tick of the financial stocks. It would be better if the financial stocks would clear their more important resistance near 15.10 but right now they are having trouble with the declining 5 dma and prior support at 14.60.  The financials should be watched closely today, if they break down further from here it could drag on the rest of the market.  Two financial stock which are sick looking and should be kept an eye on are USB and WFC.  It should also be noted that market leading AAPL broke and closed below th 5 DMA on Tuesday, that is the stocks first close below the 5DMA since late August.