Levels to Work Through to the Upside

Needless to say this market is wicked volatile - we are getting 10 point S&P moves in minutes, both up and down. Like a bucking bronco... not a real sign of health.

But it's never too early to look ahead at the bounce. Here are the levels I see as potential areas of resistance although as anyone has seen the past 15 months, once the market gets a head of steam resistance has been swiss cheese.

1094 (today's pivot point aka May 7th's intraday low)
1102 (200 day moving average)
1120 (the level the market was falling to earlier this week and bouncing off of
1150 (January 2010 highs, and support for the market before the flash crash)

Somewhere in the mix will be the 20 and more importantly 50 day moving averages - impossible to peg a number because by the time said rally arrives the data points will be in different places.

More importantly for the intermediate term is what type of bounce it is, and where it takes the S&P 500. If it's relatively flaccid we might have put in the high for the year a month ago.

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