SPX Support, Resistance (S/R), Moving Averages and Other Important Levels for Trading the Week of 1/21/14

SPX support, resistance (S/R), moving averages and other important levels are provided for trading the week of 1/21/14. Markets are closed Monday in Observance of Dr Martin Luther King Day Jr holiday. Last week, the bull's created new all-time highs and 2014 turned briefly positive. Note the new all-time closing high at 1848.38 overtook the prior all-time high at 1848.36 by only two pennies, not exactly a ringing endorsement, but a new all-time closing high nonetheless.

The new all-time highs came with strong volume on Wednesday, but alas, the selling volume on Friday overtook this volume showing that the bears continue to growl stronger. This behavior where selling volume is greater after each mini-peak represents distribution occurring, where the larger funds are handing off the long stocks to Ma and Pa Kettle who are always the sucka's that show up too late and end up holding the bag. The media pundits, and Fed, continue to cheer lead the markets. None of them see any asset bubbles and the daily mantra is buy, buy, buy. Joe Retail already took all his Christmas money and bot TWTR, NFLX, WYNN, GOOG and FB stock, as well as the broad market, dividend stocks, high-yield investments and biotechs (the latter four are plump asset bubbles despite what you are told), following through on the recommendations from television personalities. Three strong distribution days occurred over the last nine trading days. Do not be the one without a chair when the music stops--the band is already starting to sputter and play off key.

The new all-time intraday high is 1850.84. January, and the year, began at 1848 so pay close attention to this number with nine trading days remaining in the month. Also the 20-day MA at 1834.96, and rising. The 50-day MA is 1807.57, and rising. The SPX weekly chart continues to display negative divergence with the price far extended above the moving averages wanting to see a spank down occur on the weekly basis. In addition, the weekly chart prints a doji candlestick which hints at a trend change on tap for the new week ahead (the market trend remains up overall so the doji trend change would be to the down side for equities moving forward).

For Tuesday, which begins the 4-day holiday-shortened trading week, with the SPX starting at 1839, the bulls need to punch up through 1846, and an upside acceleration will quickly test the all-time high at 1851. The bears need to push under 1835, only about three points lower, to accelerate the downside which will seek out 1818-1824 in short order. A move through 1836-1845 is sideways action to begin the week. Serious market trouble would occur if last week's low at 1816 fails since price would then seek the confluence with the 50-day and horizontal support at 1808. If that fails, the 1803 support test and sub 1800 numbers will follow along very fast.

1851 (1/15/14 All-Time Intraday High: 1850.84) (1/15/14 Intraday High for 2014: 1850.84)

1850.84 Previous Week’s High

1849 (12/31/13 Intraday High Top for 2013: 1849.44)

1848.36 January and 2014 Begins Here

1848 (1/15/14 All-Time Closing High: 1848.38) (1/15/14 Closing High for 2014: 1848.38) (12/31/13 Closing High for 2013: 1848.36)

1846.04 Friday HOD

1846

1845

1844

1843

1842

1840

1839

1838.70 Friday Close – Monday Starts Here

1838

1835.23 Friday LOD

1834.96 (20-day MA)

1832

1828

1824

1823.22 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

1818

1815.52 Previous Week’s Low

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

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

1810

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

1807.57 (50-day MA)

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

1806

1805

1803

1801

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

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

1796

1793

1791

1788

1783

1782

1781

1777

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

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

1770

1768

1766.82 (20-week MA)

1763

1762

1759

1756

1755.12 (100-day MA)

1752

1748

1747

1745

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

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

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

1723.42 (150-day MA; the Slope is a Keystone Cyclical Signal)

1722

1720

1711

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

1708.43 (10-month MA; a major market warning signal)

1708

1706

1703

1700

1698

1697

1696

1695.95 (200-day MA; not tested for 1 year extremely odd behavior)

1693

1692

1691

1689

1688

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

1686

1685

1683

1682

1680.68 (12-month MA; a Keystone Cyclical Signal) (the cliff)

1680

1675

1672.79 (50-week MA)

1672

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

1666

1664

1661

1659

1657

1652

1650

1649

1647

1646

1640

1639

1636

1634

1629

1627

1626

1624

1623

1618

1614

1611

1609

1607

1606

1605

1600

1598