Stocks gapped up higher this morning and are trying to hold on to solid gains after looking closer at the weekly jobless claims report and the reason why the drop was so large. The fundamental consensus ahead of tonight's televised vice presidential debate is that perhaps earnings season will not be quite as bad as many expected even a couple of weeks ago. We are analyzing the SPDR S&P 500 (NYSEMKT: SPY) as it is the most liquid of all ETFs.

For Thursday's chart analysis, Phil Erlanger said:

Wednesday was another pivot to support day. We noted, "Watch for the 2:00 time to see how trading goes when FOMC notes are due out. Continue to short breaks of support." SPY bumped along at support all day before closed a bit under support.   Today we are trading above resistance at $144.04. The trick is to now move above the 5 minute high at $144.33. A break of resistance to the downside would be painful for the bull camp.

The Erlanger Value Lines can be accessed via

OCTOBER 11, 2012

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