SPY follow up

As a follow up to this post on the SPY from a few days ago, which regards the health of the market over the near term (many use the SPY as a proxy for the health of the overall market), notice 2 days ago the market opened right on the resistance level, as evidenced by the body of the candle resting on support, then traded down for a perfect bounce off the 20 day moving average (green line). Yesterday the market traded up, the first lines of support held in textbook fashion.

(click for bigger image)

So if we are to continue downward, it will likely be an erratic path as there are many levels for the indexes (pick you poison, Q's, SPY, DJIA, RUT, even sector plays) to violate and bounce from... that is if we don't quickly resume moving to new highs, or just bang around in a consolidation zone for some time. For now, stay with what is working.