The JUN'09 SP500 Index is stuck in the spin cycle.
Currently the 926-873.25 levels define the digestive range extremes with 899.25 the Inflection Pivot for today.
In the unlikely event that the MKT is going to make a move today, this will be the trigger. A held trade above here keeps the buyers interested but its all smoke and mirrors below the 933-926 resistance band. As long as the Index is below this resistance it is vulnerable to a return to the MAR'09 lows. A breach and a search for resistance resumes with 1007 the initial target for any new run.
A held trade below 899.25 is a sign of weakness that puts the contract back in a soft spot. Expect either a tightening of the recent pattern or an extension down to the 873.25-866.50 support area. Buying is expected to provide a bounce back into more of the same choppy trading conditions. Only under 862.50 does the fear factor raise the emotional level and put the MKT on edge.
JS
