Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

The S&P 500 Index is in a trading range

|Includes: SPDR S&P 500 Trust ETF (SPY)

In the past three days, the S&P 500 lost an average of 40 points, suggesting a current support of 1040.  Meanwhile, the highs are 1070 (closing) and 1080 (intraday) of last week still stand as the highs for this bullish move that has been in place since March. Thus, there is a small trading range between 1040 and 1080. A breakout of that range will likely prove to be significant in that it should spur prices to move another 30 points or so in the direction of the breakout.

Meanwhile, the major trend line of this bull market -- the one connecting the March and July lows -- is nearing 1010 area. That should provide support as well. However, a violation of that line would put the entire bullish move in jeopardy. On the upside, there is not much previous resistance until the 1110-1120 area, so if prices can rise above last week's highs, they should be able to add onto gains fairly quickly.