$SPY Analysis 9/7

• John Lee
• September 7th, 2010

As indicated by the daily chart, there is at least a triple layer of resistance between 110.50-111.50. Make no mistake folks, we’re still in a neutral range. This range is designed to frustrate as many traders as possible so hold steady. The intermediate-term market is still neutral as long as we’re still in a range.

There is a psychological level at every point (109, 110, 11, etc.). We’re currently between 110-111.

If we break Friday’s lows, we could have a potential gap fill.

We’re set to open at around 110.20 (as of 8:45AM EST). Immediate potential support is between 109.95-110.05. Below this level initiates a potential gap fill. Immediate potential resistance is between 110.45-110.55. If we reach higher, then look for Friday’s high (110.99) and Friday’s close (110.89) as potential resistance areas.

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