May 22, 2009 (FinancialWire) (By Frank Kollar) — The S&P 500 Index (SPX) took a solid hit on Thursday, May 21, after advancing early in the week. Note that the S&P Deposit Receipts (NYSE: SPY) can be traded as a proxy for the SPX. Thursday’s decline places the SPX near its correction lows reached last week.

When those lows, at SPX 878.94, were reached it resulted in a huge rally on Monday, May 18. They constitute support for the market.

The highs, at SPX 930.17, reached two weeks ago resulted in the current correction and constitute strong resistance.

A close below SPX 878.94 would likely result in a continuation of the correction and lower lows. A close above SPX 930.17 would result in a breakout and likely to near-term higher highs.

For the SPY, support is at about $88.00 and resistance is at $93.00.

If we do move lower, initial support should be found around SPX 848 which is the 50-day moving average for this big cap index (for the SPY the 50-day moving is at about $85.00).

The Investrend Earnings Calendar features Campbell Soup (NYSE: CPB), expected at $0.43 versus $0.43 a year ago; Met-Pro (NYSE: MPR), expected at $0.11 versus $0.13 a year ago; Mobile Telesystems (NYSE: MBT), expected at $0.77 versus $1.17 a year ago. The market will also be watching the Investrend Money Index Most Active Data Domain, Inc. (NASDAQ: DDUP) up 34.00%.

The Investrend Economics Calendar lists Early close for bond market ahead of holiday weekend (2 p.m.).

The Investrend Events Calendar showcases ECA, RGNC at Platts Midstream Development & Management Conference.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 11 advancers versus 36 decliners and three unchanged. Advancers were led by Data Domain, Inc. (NASDAQ: DDUP) up 34.00%, Brocade Communications Systems, (NASDAQ: BRCD) up 14.45%. Decliners followed Evergreen Solar, Inc. (NASDAQ: ESLR) down 18.83%, Regions Financial Cp (NYSE: RF) down 16.16%, Huntington Bancshares Incorpora (NASDAQ: HBAN) down 10.79%, Fifth Third Bancorp (NASDAQ: FITB) down 9.86%, E*Trade Financial Corporation (NASDAQ: ETFC) down 7.19%.

Vote in the Investrend Poll Question of the Day at Investrend Information (http://www.investrendinformation.com).

Investrend Website of the Day: http://www.cwtv.com/

Quote of the Day: “Chief executives, who themselves own few shares of their companies, have no more feeling for the average stockholder than they do for baboons in Africa.” T. Boone Pickens

Today is: International Day for Biological Diversity.

Happy Birthday: Alexander Pope, Richard Wagner, Sir Arthur Conan Doyle, Sir Laurence Olivier, T. Boone Pickens, Richard Benjamin, Susan Strasberg, Bernard Shaw, Michael Sarrazin, Paul Winfield, Bernie Taupin, Naomi Campbell, Apolo Anton Ohno.

Today in History: Pope Gregory XI issued five papal bulls in 1377 to denounce the doctrines of English theologian John Wycliffe. A grand jury indicted former Vice President of the United States Aaron Burr on a charge of treason in 1807. The SS Savannah left port at Savannah, Georgia, United States, in 1819 on a voyage to become the first steamship to cross the Atlantic Ocean. The transporting of British convicts to the New South Wales colony was abolished in 1840. The Wright brothers were granted U.S. patent number 821,393 in 1906 for their Flying-Machine. The most powerful earthquake ever recorded, measuring 9.5 on the Richter scale, now known as the Great Chilean Earthquake, hit southern Chile in 1960. Mister Rogers’ Neighborhood, the longest-running children’s series on U.S. television, aired its first episode in 1967. The nuclear-powered submarine the USS Scorpion sank in 1968 with 99 men aboard 400 miles southwest of the Azores. The Windows 3.0 operating system was released by Microsoft in 1990. In 1992, after 30 years, 66-year-old Johnny Carson hosted The Tonight Show for the last time. In Fort Worth, Texas, in 2003, Annika Sörenstam became the first woman to play the PGA Tour in 58 years. The U.S. town of Hallam, Nebraska, was wiped out in 2004 by a powerful F4 tornado that broke a width record at an astounding 2.5 miles wide.

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