Both the SPY and the Nasdaq Composite held back the bull raid in early trading, with the indexes reversing just under the 50 day moving averages. This average is widely used by traders to determine whether markets are in an intermediate up or down trend.
So far, the Nasdaq was beaten back at 2696 (with 2700 noted previously here as heavy resistance), while the SPY reversed at 149. This level on the SPY has also been highlighted previously as an area of heavy resistance.
A SPY close below 148.00 will also place this proxy of the S&P 500 just beneath its 200 day moving average. This would place the index back into the bears’ honey hole, and may provoke more aggressive selling.