Shore Capital Management LLC

In our previous comments there was mounting evidence of the the S&P (basis Sept) to consolidate, but with an upward bias. The market did consolidate for a short period of time after rallying for a month. We had a second support level of 985 to 971. The market fell to this support range and bottomed at 975.50 on 8/17/09 before it made new highs of 1027 on 8/21/09. On 8/19/09 we received a short term buy signal. On 8/21/09 we received both a short and long term buy signal.

We still believe this market to have an upward bias, but could trade with a lot of back and fill action in the near future.

Basis the September contract, the next resistance level is 1030 to 1032. If the market should continue higher the next major resistance level would be 1040 to 1050. There is major resistance at 1090.

The next support level is 1020 to 1019. If this level is broken, there is major support at 1011 to 1000.