SPX Support, Resistance (S/R), Moving Averages and Other Important Levels for Trading the Week of 12/30/13

SPX support, resistance (S/R), moving averages and other important levels are provided for trading the week of 12/30/13. The SPX gaps-up at the opening bell for five days in a row. There are only buyers remaining in the market. Buyers are selling to other buyers and then as price keeps catapulting higher, the previous buyers jump in to buy off the current buyers and the band plays on. The music is in its full glory now, long traders are drunk as skunks, enjoying the Fed and BOJ liquor, dancing around the packed ballroom ignoring the locked exits and only two chairs available in the corner once the music stops. For now, the light volume holiday trading, the Santa Claus rally, makes it easy to gap up and maintain the elevated highs. The bigger gaps below at 1833-1835 and 1818-1823 are downside targets. Last week's low is 1823 as well. December ends in two days and it looks like the bulls will print another up month unless a 35-point drop occurs in the remaining 13 hours of trading for 2013. Interestingly, and typically, when a month is strongly higher, the last couple days do finish weak. The 20-day MA at 1803.98, and rising, needs back tested and this, along with the horizontal support creates a strong price floor at 1803-1808.

A new moon occurs at 4:15 AM EST on New Years Day, 1/1/14, when markets are closed. Equities are typically weak moving through the new moon each month so a happy finish to end the year may lead to weakness at the tail end of the week when everyone returns to trade the new year with hangovers. For the bulls, new money, especially to begin the year, will help buoy markets into early next week, so these are counteracting forces to begin the year. In addition, we are now in a major Bradley turn window where a significant market move should occur (Bradley turns only highlight the dates where significant market trend changes may occur, or accelerations, but do not predict direction).

For Monday, today, the bulls need to touch the 1845 handle and the big upside party continues with an 1850 print on tap. The bears need to push under Friday's low at 1840 and that will accelerate the downside to the 1833-1835 gap fill. A move through 1841-1843 is sideways action in this thin trading environment. Since this sideways range is so tight, one side or the other will likely receive the nod. S&P futures are flat about one hour before the opening bell. The key for bulls is touching 1845 to continue the party higher. Bears need 1840, then 1828, then 1823, this week to return equities to earth. The breakout from the sideways channel at 1782-1808 occurred 5 days ago and the 1808-1814 area needs to be shown respect and back kissed in the days ahead.

1845 (12/27/13 All-Time Intraday High: 1844.89) (12/27/13 Intraday HOD for 2013: 1844.89)

1844.89 Previous Week’s High

1844.89 Friday HOD

1843

1842 (12/9/13 All-Time Closing High: 1842.02) (12/9/13 Closing High for 2013: 1842.02)

1841.40 Friday Close – Monday Starts Here

1841

1840

1839.81 Friday LOD

1835

1833

1830

1828

1824

1823

1822.92 Previous Week’s Low

1818

1814 (11/29/13 Intraday Top: 1813.55)

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

1809

1808 (12/9/13 Closing Top: 1808.37)

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

1806

1805.81 December Begins Here

1805

1803.98 (20-day MA)

1803

1801

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

1798.05 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

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

1796

1793

1791

1788

1784.68 (50-day MA)

1783

1782

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

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

1770

1768

1763

1762

1759

1756

1752

1747

1745

1738.81 (20-week MA)

1737

1736

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

1731.70 (100-day MA)

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

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

1722

1720

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

1708

1706

1704.47 (150-day MA; the Slope is a Keystone Cyclical Signal)

1703

1700

1698

1697

1696

1693

1692

1691

1689

1688

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

1686

1685

1683

1682

1680.78 (10-month MA; a major market warning signal)

1680

1676.40 (200-day MA; not tested for 1 year extremely odd behavior)

1675

1672

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

1666

1664

1661

1659

1657

1652.58 (50-week MA)

1652

1651.71 (12-month MA; a Keystone Cyclical Signal) (the cliff)

1650

1649

1647

1646

1640

1639

1636

1634

1629

1627

1626

1624

1623

1618

1614

1611

1609

1607

1606

1605

1600

1598

1597