Pre-Market Analysis: March 20, 2009

We touched 800 on the S&P 500 again yesterday morning. However, on significantly less volume (almost half) this time... Even though we have broken the 40 day EMA in the past couple of days, we closed right at it yesterday, see Figure 1.

The Asian markets were mixed last night and Gold is still holding on to the 950 level. Things don't look good for today.

The way back to 780 seem very free of resistance, isn't it? Thus, I would set my resistance at 780 and support at 800 for today. Anything beyond those bounds should be watched closely.

As usual, watch the market price in the first 30 minute as an indicator as part of today's trading plan.

[caption id="attachment_1105" align="aligncenter" width="500" caption="S&P 500"]S&P 500[/caption]