SPX S/R Week of 8-22-11

SPX support and resistance levels are provided below. On Tuesday, 8/16/11, the SPX closed at 1193, at the Lehman post bankruptcy number from 2008, and collapsed from there. Friday's high met with a firm ceiling at 1155. The 1119-1120 area is critical support over the last week, thus, if that level fails, she's going lower to more than likely test that critical low nine trading days ago at 1101.

If 1101 fails, Katy bar the door, the SPX will probably move down to test 1044 as time moves along. SPX 1023-ish is a critical 50% Fibonacci retracement from the March 2009 bottom to the April 2011 top. Thus, the 1020-1050 zone is a very likely target as we watch the Autumn leaves fall.

For the Monday session, the SPX begins at 1124. The market bears have the wind at their backs since they closed Friday near the lows of the day. If the market bears can lose 1122 and touch an 1121 handle, the selling will accelerate quickly and the SPX will lose several handles in short order. Thus, keep an eye on the futures overnight Sunday.

The market bulls have hope since the UTIL 414 level was not breached, but they must hold the 1119-1122 level with all their might. The bulls must move above 1154.54 to accelerate the buying. If they touch 1155 and get up over that resistance, the bulls will drive the markets much higher, the buyers will enter in force driving the SPX towards 1160.

·        1206

·        1200

·        1197

·        1192-1193 (9/15/08 post-LEH bk)

·        1188

·        1183

·        1180

·        1178

·        1173

·        1168

·        1166

·        1163

·        1160

·        1158

·        1155

·        Friday HOD 1154.54

·        1152

·        1150 (Important from 5/6/10 and 5/10/10)

·        1144

·        1141

·        1140

·        1138

·        1133 (First trading day 1/4/10)

·        1131

·        1127

·        1123

·        Friday LOD 1122.05

·        1121

·        1119

·        1115 (EOY 2009)

·        1111

·        1109

·        1104

·        1101 (LOD 8/9/11)

·        1097

·        1094 (LOD 5/7/10)

·        1092

·        1090

·        1087

·        1083

·        1080

·        1078

·        1073

·        1070

·        1066 (LOD 5/6/10)

·        1060

·        1057 (2/8/10)

·        1050

·        1044 (LOD 2/5/10; critical S/R summer 2010)

·        1039

·        1036

·        1033