SPX S/R Week of 1/17/12

The market bulls have enjoyed a fun ride upwards ever since Keystone's algorithm signaled the all-clear on 12/20/11. The SPX received a spank down on Friday from the negative divergence on the minute charts but recovered by the end of the session. Price remains above the critical 1281 level which is the 12-month MA, indicating that the Secular Bulls are in charge moving forward.  Not so fast, however, since this changeover is only a few days old thus far, and the markets have been in a Secular Bear Market for the last five months.  So allow a few more days to determine if price truly does want to stay above the 12-month MA, or not.

For the SPX, starting at 1289 on Tuesday morning, markets are closed on Monday, if the market bulls can push higher and touch the 1295 handle, the bulls will start the week with an upside party, the broad markets will accelerate higher, and the SPX will ikely print a 1300 handle. The market bears must push the SPX lower under 1278 to accelerate the downside selling. If the 1281 level is lost, however, 1277 will probably give way in short order.  A loss of 1281 ushers in serious and substantial broad market sellling moving forward.  A move thru 1282-1288 is sideways action.

·        1321

·        1318

·        1316

·        1314

·        1312

·        1307

·        1305

·        1300

·        1298

·        1296

·        1295

·        Friday’s HOD 1294.82

·        1293 (10/27/11)

·        1292

·        Friday’s Close 1289.09

·        1289

·        1287

·        1286

·        1285

·        10-day MA 1282.07

·        1281

·        12-month MA 1281.00 (Keystone’s Secular Signal)

·        1278

·        Friday’s LOD 1277.58

·        1277

·        1275

·        1272

·        10-month MA 1271.90

·        1270

·        1268

·        50-week MA 1267.74

·        1267

·        1265

·        20-day MA 1262.19

·        1261

·        1260

·        1258 (1257.64 start of 2011; 1257.60 start of 2012)

·        200-day MA 1257.89

·        1257 (3/16/11)

·        1255

·        1253

·        1252 (9/14/08 pre-LEH bk)

·        1249 (LOD 3/16/11; failure at this level 8/4/11)

·        1247

·        50-day MA 1244.19

·        1244

·        1242

·        1240

·        1238

·        1235 (12/15/10; HOD 12/7/10 large volume)

·        150-day MA 1234.52 (150-Day Slope Keystone's Secular Signal)

·        1233 (LOD 12/16/10)

·        1229

·        1227 (HOD 11/9/10)

·        1226

·        1225

·        1224 (12/7/10 large volume)

·        20-week MA 1220.79

·        1220 (HOD 4/26/10)

·        1219