Price closes at 1797, also the high for the week, and note how this is at the mid-November top at 1798-1799. In addition, the SPX remains below the 200 EMA on the 60-minute at 1798.90 which continues to signal bearish markets for the hours and days ahead. Market bulls can pour the champagne if the SPX moves above 1799 and higher. The 1796 was strong resistance, now support, so the bears have to hold 1799 R, otherwise, price will run up through 1803, 1808 and then the 1820's. So Monday will be intense with a major decision occurring at 1799.
If 1799 is taken out to the upside, note that both the 20-day MA at 1804.25, and 50-day MA at 1809.35, both falling, are in need of back tests. Interestingly, the strong 1803 resistance corresponds to the 1804 and the strong 1808 to the 1809. These two levels serve as the last gauntlets of resistance for the bears to hold back the upside; the 1803-1804 and 1808-1809 levels. Looking at the downside, the move back above the 20-week MA at 1782.66 created strong buy side interest. February began at 1783 as well. Price respected the 100-day MA at 1773.10 on the way down and back up. The 1772 S/R level is the strongest level on the list and very important. Bulls rule above 1772. Bears rule below 1772.
The SPX placed the bottom three days ago exactly at the 150-day MA, now at 1740.02, and rising. The bottom was at 1737 and the 150-day MA must be treated with strong respect here on out. On the way back down, price will likely accelerate to the downside once the 150-day MA support fails. Also of interest is how close price came to the 10-month MA at 1722.76. This is a more obscure moving average to follow but it is a fave of the old-timers that have traded for decades. The old-timers always have a few cards up their sleeves that the young whipper snappers do not. Price came within about 15 handles of the 10-month MA. Bad things will start to happen to markets once the 10-month fails.
The Dow came down to test its 200-day MA but the SPX did not. In general, when price starts lower again, the key support levels are 1796, 1791, 1788, 1783, 1772, 1763, 1745, 1733, 1722, 1706, 1697-1698 and 1691-1693. The resistance levels above are 1799, 1803-1804, 1808-1809, 1818, 1828, 1832, 1838-1843, 1845-1846, 1848, 1849, 1851 and new all-time highs.
For the SPX for Monday, starting at 1797, the bulls need 1798, only one point, and the 1799 described above will give way like a hot knife through butter. Thus, watch the Sunday overnight futures since any smidge of green means the bulls will rule the roost again on Monday. Bears must keep the overnight futures negative. If 1798-1799 gives way, the bulls will charge to 1803-1804 resistance immediately and the momo will likely pump price straight to the first real resistance test at 1808-1809. The bears need to retrace the Friday up move, a formidable task. Instead, the bears will try to keep utilities and financial sectors weak, while at the same time holding each resistance level as best they can. A move through 1777-1798 is sideways action.