SPX Support, Resistance (S/R), Moving Averages and Other Important Levels for Trading the Week of 8/5/13

SPX support, resistance (S/R), moving averages and other important levels are provided below for trading the week of 8/5/13. The bulls are powering higher and printing new all-time closing and intraday highs for the SPX at 1709.67. The central bankers keep pumping the QE talk to encourage the long side and China vowed to support the +7.5% growth for this year. Copper and commodities will not take the markets down but when they move up they take the markets up. This behavior represents the thumb on the scale by the Fed, BOJ, ECB, BOE and others. The SPX closed at the highs for the day on Friday in a late-day upside orgy. Thus, any tiny smidge of green in the futures overnight tonight for the bulls will send the SPX powering towards the 1720's. The bears need to push under 1701 in Monday trading to accelerate the downside and stop the upside thrust. A move through 1702-1709 is sideways action to begin the new week. Keybot the Quant remains long but is in position to go short and if the SPX drops under 1701 Keybot will likely flip short. Copper, JJC 39.02, carries a lot of clout right now and dictates market direction. Watch copper trading overnight Sunday since up copper means up equities and down copper means down equities.

Price is extended above the 20-day MA at 1682.55 above the 50-day MA at 1647.93 above the 200-day MA at 1537.22, thus, a pull back would be anticipated like the May top, mid-June top, and mid-July top. The SPX prints a hanging man candlestick for Friday's action indicating that a trend change is on tap, but Monday would need to see follow-thru to the downside to confirm the trend change. The charts are positioned to weaken moving forward but any time Chairman Bernanke appears in front of a microphone, and so much as coughs and it sounds like he says QE, the markets run higher. Support below is 1706, 1701, 1698-1699, 1696, 1691-1692, 1685-1687, and 1680-1683. Price has not back kissed the 20-day MA since it broke out to the upside one month ago so a move back down to the mid to upper 1680's would be prudent. The volume remains unimpressive for the market move higher. The bulls keep pushing higher while Bernanke's violin music keeps playing.

·         1710 (8/2/13 All-Time Intraday High: 1709.67) (8/2/13 Intraday HOD for 2013: 1709.67) (8/2/13 All-Time Closing High: 1709.67) (8/2/13 Closing High for 2013: 1709.67) (Previous Week’s High: 1709.67)

·         1709.67 Friday HOD

·         1709.67 Friday Close – Monday Starts Here

·         1708

·         1707

·         1706

·         1701

·         1700.68 Friday LOD

·         1699

·         1698

·         1697

·         1696

·         1693

·         1692.93 (10-day MA)

·         1692

·         1691

·         1687 (5/22/13 Intraday High Top: 1687.18)

·         1686

·         1685

·         1684

·         1683

·         1682.55 (20-day MA)

·         1681 (Previous Week’s Low: 1681.86)

·         1680

·         1678

·         1676

·         1675

·         1672

·         1669.86 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

·         1669 (5/21/13 Closing Top: 1669.16)

·         1666

·         1661

·         1659

·         1655

·         1654

·         1652

·         1651

·         1650

·         1649

·         1647.93 (50-day MA)

·         1647

·         1640

·         1639

·         1636

·         1634

·         1632