TECHNICALS SPX

Markets sank in the after markets on Thursday as news of the Madoff fiasco hit the wires. An ugly day was on the horizon but before trading ended - the markets flipped to green and ramped further after the close as the SPX Futs hit near the 885 level.

If you check the charts of the last few days, that 885 level was solid support until Thursday afternoon when the markets went straight down in the last few hours (rumors of the Madoff news).

Anyhow, we should open Monday somewhere near the 885 level unless some other piece of news hits before 9:30AM - and that 885 should be initial resistance as the old support area becomes new resistance. If we get past the 885 level - look for more resistance a hair above 900 and the SMA 50 at/near the 905/910- and one more - the 61.8 retrace from the 1,008 high to the 740 low near the 945 level on the SPX.