SPX Support, Resistance (S/R), Moving Averages and Other Important Levels for Trading the Week of 12/16/13

SPX support, resistance (S/R), moving averages and other important levels are provided for trading the week of 12/16/13. The SPX is under the 200 EMA on the 60-minute signaling bearish markets for the hours and days ahead. The strongest big-picture S/R levels are 1814, 1808, 1803, 1772, 1763 and 1745. Price dropped last week and is testing the strong 1772 support; it is not surprising that price held on the first attempt. Note how Friday's close, the low print for the week, the strong horizontal support and the late October intraday and closing tops all form a confluence at 1772-1775. Thus, the die is cast and price will either bounce, or die, from this 1772-1775 gauntlet. Bears are happy campers under 1772 since 1762-1763 is the next support. Price would also test the 50-day MA at 1761.74. Bulls will be happy campers above 1775 since a test of 1781-1783 R is next which would potentially lead higher. A back kiss of the 20-day MA at 1795.04, and falling, will be needed at some point forward.

The SPX is smack-dab between the 20-day MA and 50-day MA so watch these important moving averages as a range bracket; so bulls win above 1795 and bears win under 1762. The bull-bear battle continues through 1763-1794. The strength of the 1772 support level cannot be understated; bulls are fine moving forward if they keep the SPX above 1772. If 1772 fails, the market downside will be far more extended. For Monday, starting at 1775, the bulls need to touch the 1781 handle and the upside will accelerate with price likely piercing straight up through 1782-1783, ruining the current downside trend for the bears, and heading higher to test 1788. So if you are bullish, you want to press up through 1781-1783 and this verifies that the buy-the-dippers are in the market and an upside pump is occurring. The bears need to push down through 1772 and all Hades will break loose to the downside. The 1768 would be tested quickly and fail and then price will seek 1763 quickly where a bounce or die moment would occur. A move through 1773-1780 is sideways action for Monday.

1814 (11/29/13 All-Time Intraday High: 1813.55) (11/29/13 Intraday HOD for 2013: 1813.55)

1812 (12/9/13 Market Top: 1811.52)

1811.52 Previous Week’s High

1809

1808 (12/9/13 All-Time Closing High: 1808.37) (12/9/13 Closing High for 2013: 1808.37)

1807 (11/27/13 Market Closing Top: 1807.23)

1806

1805.81 December Begins Here

1805

1803

1801

1799 (11/18/13 Market Top: 1798.82)

1798 (11/15/13 Market Closing Top: 1798.18)

1796

1795.04 (20-day MA)

1793

1791

1788

1783

1782.65 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

1782

1780.92 Friday HOD

1775.32 Friday Close – Monday Starts Here

1775 (10/30/13 Market Top: 1775.22)

1772.45 Friday LOD

1772.28 Previous Week’s Low

1772 (10/29/13 Market Closing Top: 1771.95)

1770

1768

1763

1762

1761.74 (50-day MA)

1759

1756

1752

1747

1745

1737

1736

1733 (10/17/13 and 1018/13 Gap-Up: 1733.15-1736.72)

1730 (9/19/13 Market Top: 1729.86)

1726 (9/18/13 Market Closing Top: 1725.52)

1725.88 (20-week MA)

1722

1720.79 (100-day MA)

1720

1710 (8/2/13 Market Top: 1709.67)

1708

1706

1703

1700

1698

1697

1696

1694.92 (150-day MA; the Slope is a Keystone Cyclical Signal)

1693

1692

1691

1689

1688

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

1686

1685

1683

1682

1680

1675

1674.17 (10-month MA; a major market warning signal)

1672

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

1666

1664.28 (200-day MA; not tested for 1 year extremely odd behavior)

1664

1661

1659

1657

1652

1650

1649

1647

1646.21 (12-month MA; a Keystone Cyclical Signal) (the cliff)

1646

1640

1639

1638.16 (50-week MA)

1636

1634

1629

1627

1626

1624

1623

1618

1614

1611

1609

1607

1606

1605

1600