July 13, 2009 - SP500 at Critical Point

In the past 2 weeks we've seen some weakness in the S&P500 as it slid below its 50 day moving average, and it's hugging the 200day moving average down!

At the 875 level we have some support as it has been local support and a previous resistance level going back to February.




I am concerned that this support may not hold, as volume keeps declining. I think some big money has come into the market since the March lows, and since these new entrants got in at all time lows, they will be looking to hold through this downturn, if not too severe.

This week is option expiry and more earnings are coming out. Let's see how the week plays out...