Today: The S&P futures are fading a bit in the over night trade, after posting a
new high of this leg up yesterday at 1140.50. This was just shy of the longer
term resistance level of 1141.75, and obviously the high of the move at
1148.00. The entire move up of our retracement low was 100 handles, so just
how far back this thing can retrace is fairly easy math. Note also that the ATR
keeps shrinking, and we are back down to an 11 handle, so to quantify in your
mind the size of these moves like this retracement keep that boundary in mind.
This morning the key resistance levels now that the index will have to get
through to possibly make a run for new highs, starts with 1135.50, that is the
level the night session has centered around, and this will be the initial pivot
area. Above there look for the dual levels of 1137.50 and 1138.75, once above
those two hurdles it is free to go. Support on a further down move starts with
1131.75, and the index may see weakness if it gets below there. 1126.25 is the
next support, and an all out failure finds footing at 1118.00 and the daily
support line at 1115.00.

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