PreMarks 08.19.11

Markets are set to open lower on continued banking worries out of Europe and recession concerns in the US.  Stocks at a minimum look like they are going to retest last week's lows.  I've tried to provide some longer term perspective on the importance of the 1100-1090 level on the S&P 500 in this weekly chart of the S&P 500 index ETF SPY*.  We're gonna get some idea of where the market might be headed by how we respond to this level. 

Note that there is an error in the chart.  The 110-109 level is labeled as resistance in the blue caption above.  You should substitute the word support there instead.

*Long ETFs related to the S&P 500 in client and personal accounts.