SPY's Daily Support and Resistance Levels

by Paul Costa

Pre-Market:  Futures are down slightly this morning and SPY is trading in the low 131.00's.  The dollar has been gaining strength throughout the morning and the EUR/USD pair has been getting weaker.  Keep an eye on the TNX year as well from out post early TNX has hit resistance at 21.00 and if it moves lower could bring the market back down. Don't forget its a FED DAY!

Support:  Key support to watch today is first 131.11 this has stopped most of the moves lower in the pre-market and is a short-term support level since Friday.  Other notable levels are 130.90 which is the uptrend line support level from December.  This trendline stopped the market from declining yesterday and may do so today.  If this level does not hold selling should pick up, with the next support being near 130.00-129.79.

Resistance:  Key resistance is 131.46 the market has been able to get above this but never close above it.  A strong move above it and it would trigger some more short covering.  If SPY deos get below 131.11 this will act as resistance as well.  SPY does not have to many strong resistance levels above it right now but rather a large resistance zone from the drop in the summer- so this area may prove to be to much for the market especially if it is stalling at these levels. 

Overall:  ITS A FED DAY!!! So anything can happen and the market will likely chop around till the Fed speaks.  After that the levels come into play anything above 131.43 is bullish and anything below 130.60 is bearish. 

Read more http://www.pikertrader.com/main-page/2012/1/25/spys-daily-support-and-resistance-levels.html