SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 5/13/13

SPX support, resistance (S/R), moving averages and other important levels are provided below for trading the week of 5/13/13. Bullish euphoria continues with a Friday late-day upside market orgy occurring as volatility was smashed lower and commodities pushed higher. This action prints a new all-time closing high at 1633.70 but fails to print a new all-time intraday high which remains at 1635.01 from Thursday afternoon when the dollar/yen 100+ move (BOJ weakening the yen) occurred. So 1634-1635 serves as the resistance ceiling to begin the new week of trading. The markets were jammed higher into the closing bell with the major indexes all closing at the HOD (high-of-day). For Monday, the bulls need to touch the 1634 handle and it will be another strongly bullish day with new all-time highs on the way and a potential run to touch the 1640 handle.  The bears need to push under 1624 to accelerate the downside to 1618 which would occur in short order.  A move through 1625-1633 is sideways action for Monday.

The key S/R levels are 1634-1635, 1626, 1618, 1614 and 1597-1598. The SPX, and markets in general, are very overextended, and, considering the near-universal bullish optimism occurring right now, a market pull back is extremely likely at any time. The question will be how far the markets want to sell off before the buy-the-dip crowd arrives.  The 1614 and 1597-1598 strong support levels are obvious targets below. Interestingly, May started at the 1597-1598 support and will dictate whether May is a positive month, or not.

A move under 1597 will open the door to 1576. Price needs to back kiss the 20-day at 1589.28 which is sloping upwards. The 1593 support is where price topped in April. The 1589 is strong support and Keystone's 60-Minute Chart with 200 EMA Signal level is 1588.57 sloping upwards. Bad things will happen to markets if the 200 EMA at 1589 is lost. These support levels form a confluence, especially with the 20-day MA and 200 EMA sloping upwards, at 1589-1593. This 1589-1593 support gauntlet is very important for the new week ahead since a market bounce may occur from here, or, market failure and collapse. The 50-day MA is at 1570.07 sloping higher forming a confluence with the strong 1576 support so the 1570-1576 level would be targeted next if the 1589-1590 support level fails and the markets are selling off in force.

·         1635 (5/9/13 All-Time Intraday High: 1635.01) (5/9/13 Intraday HOD for 2013: 1635.01) (Previous Week’s High: 1635.01)

·         1634 (5/10/13 All-Time Closing High: 1633.70) (5/10/13 Closing High for 2013: 1633.70)

·         1633.70 Friday HOD

·         1633.70 Friday Close – Monday Starts Here

·         1633

·         1627

·         1626

·         1624

·         1623.71 Friday LOD

·         1623

·         1620

·         1618

·         1617

·         1614 (Previous Week’s Low:  1614.21)

·         1612.24 (10-day MA)

·         1600

·         1599

·         1598 (May begins at 1597.57)

·         1597

·         1593 (4/12/13 Market Top: 1593.30)

·         1589.28 (20-day MA)

·         1589

·         1588.57 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

·         1586

·         1583

·         1581

·         1579

·         1576 (10/11/07 Intraday High: 1576.09)

·         1570.07 (50-day MA)

·         1569

·         1565 (10/9/07 Market Top: 1565.15)

·         1564

·         1563

·         1561

·         1556

·         1553 (10/31/07 Top: 1552.76) (3/24/00 Top: 1552.87)

·         1552

·         1551

·         1548

·         1546

·         1544

·         1539

·         1536

·         1534.01 (20-week MA)

·         1531

·         1528 (3/24/00 Closing Top: 1527.46)

·         1526.05 (100-day MA)

·         1525

·         1524 (12/11/07 Top: 1523.57)

·         1521

·         1520

·         1518

·         1516

·         1514

·         1512

·         1509

·         1505

·         1503

·         1500

·         1498 (12/26/07 Top: 1498.85)

·         1495

·         1491.50 (10-month MA)

·         1489.07 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1489

·         1485

·         1481

·         1476

·         1475 (9/14/12 Intraday HOD for 2012: 1474.51)

·         1472

·         1471.38 (12-month MA; a Keystone Cyclical Signal) (the cliff)

·         1470.71 (200-day MA)

·         1468

·         1466 (9/14/12 Closing High for 2012: 1465.77)

·         1465

·         1461

·         1460

·         1457

·         1456

·         1453

·         1451.94 (50-week MA)

·         1447

·         1446

·         1444

·         1441

·         1440 (5/19/08 Intraday HOD for 2008: 1440.24)

·         1438 (9/13/12 Fed Announces QE3 Infinity)

·         1435

·         1433

·         1431

·         1430 (12/12/12 Fed Announces QE4 Infinity and Beyond)

·         1429 (11/6/12 President Obama Election Top)

·         1427 (5/19/08 Closing High for 2008: 1426.63) (2013 Begins at 1426.19)

·         1424

·         1422

·         1419

·         1416

·         1414

·         1413

·         1409

·         1406 (5/29/08 HOD: 1406.32)

·         1404

·         1403 (9/6/12 ECB Announces OMT Bond-Buying Program)

·         1402

·         1399

·         1397

·         1394

·         1391

·         1388