Monday Pre Market TAO 8-31-09

Over the weekend the news was OK around the world. The caution is almost palpable and I can just about see the steam coming off the charts. Is the top here or not? Well that is a tough call.
But this market has defied gravity and is still floating along. Going in to the Labor Day Holiday weekend, I don't expect any big moves. we are stuck in the range I outlined in the chart on Friday.
Today volume will be light and the open will be choppy. I am flat and have no positions therefore I feel like I can be as open minded and objective as one can be. The plan this week is to trade lightly taking a scalp or two where the opportunity comes along.

Again, the 5 day range Spx top is 1040 and the Bottom is 1015 and it looks like we are to open on the low side around 1020.

Looks like the Spy will open gap down into a support zone of10250 and bounce up to the 10450 area. This will tell us how convicted the buyers will be to continue to buy the dips . I'LL jump on the bus and see where it goes with a stop at 10195.