SPY - Analysis of Resistance

It seems like there is so much supply above 935...approximately 1 - 1.5 billion or less accumulated from 10/10/2008.

Our chances for breaching this level depends on how much of these supplies has been released when SPY sold off to hit the bottom on 24/11/2008.

Today, we tested 936 briefly on low volume...but I doubt that was any real test of that level. Sellers could just be waiting up there to get rid of some of their supply....but the bulls chickened out and pulled back.

So I will assume that, we will continue trading in the range of between 850 to 935 for a longer time.....unless I see sufficient volume coming in to retest and buy up those supplies.

In the short term, I expect the trading range to be real tight....unless MMs make an effort to pull back lower.