The S & P 500 SPDRS (AMEX: SPY) seem ready to test a key price area.

Stocks seem to have bottomed, but are having some difficulty in developing leadership as money seems to be flowing into index instruments rather than individual areas of the market.

The net effect is that one sector is essentially moving as much as another, making it difficult to pick individual stocks.

At times like these, it makes sense to look at the market as a whole. And the S & P 500 SPDR ETF is a good place to look during markets such as the current one.

SPY has been bottoming out for several weeks, making its first bottom in late February, then forming a base before retesting its lows on March 17. The bottom held, and now the question is whether SPY can break above key resistance and start a bona fide rally.

A key resistance level is the 135 price area, just above the 50-day moving average. If SPY can clear this hurdle, we could see a move toward 145, where the 200-day moving average looms.

A lot can happen between now and such a potential test. But even if the rally, if it ever comes, dies at 145, a ten point move in SPY is a nice enough short term trade, making the vigil at 135 worthwhile.

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Doctor Joe Duarte's Market I.Q., offers subscribers a unique blend of intelligence, market commentary and trading strategy. Duarte's daily articles, and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Doctor Duarte is a writer, and an emerging futurist, with a diverse background, and a growing audience. His combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.

He is the author of four books: "Futures And Options For Dummies," "Successful Energy Sector Investing," "Successful Biotech Investing" and co-author of "After-Hours Trading Made Easy."

In early 2001 Dr. Duarte in "Successful Energy Sector Investing," correctly predicted that Venezuela's political problems could lead to an energy crisis in the United States.

In 2003, also Dr. Duarte was among the first to widely publicize the long-term friendship between French President Jacques Chirac and Saddam Hussein.

He has also appeared as a weekly guest on Market Mavens Radio, has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.

One of CNBC's original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990.

His articles and commentary have been featured on CBS Marketwatch, Barron's, Smart Money, Medical Economics, and in Technical Analysis of Stocks and Commodities magazines.

In 2003, Doctor Duarte received second place, in the professional section, of the Medical Economics Investment Challenge with a 12-month return of 42%.