Gradual Erosion

03/10/2009 9:31 am EST

Focus: ETFS

Thomas Aspray

, Professional Trader & Analyst

chart

The SPY has been in a gradual downtrend since breaking the 80 level as the daily ranges have narrowed. The lower parallel support line is now at 64, about 6% below current levels. The only positive factor for the short term is the large gap between the close and the 50-day MA, which suggests a rebound.