The comments below were provided by Kevin Lane of Fusion IQ.

As seen from the chart below, the S&P 500 Index hit minor resistance a few trading sessions back near the 1,112 level (red line and red arrow). Until this level is taken out the near-term directional bias remains neutral.

Lower down, the key level to watch is in the 1,072 area (lower green line). This line represents a much more significant uptrend line and if violated would suggest a bigger correction.

Sentiment indicators are neutral at present, which is a positive, while market breadth remains a mixed bag.

Clearly the recent trading activity suggests volatility will be more present in day-to-day trading than over the past few months.

fusion-iq-250210

Source: Kevin Lane, Fusion IQ, February 25, 2010.

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