SPX S/R for Week of 5-31-11

The critical SPX ceiling, as discussed in the previous blog post, is the 1341-1344 area.  Up thru this level and bulls should run to fill the gap above at 1360. Bears need to push under 1329 and 1319 to move prices much lower towards the April lows and the psychological 1300 level.  1298 then 1294 are lines in the sand that if broken will result in price collapsing much lower.

For Tuesday's session, the first trading day of the week, 5-31-11, if the market bulls can push the SPX above 1334.62, the bulls will run price up to test that 1341-1344 resistance.  If the market bears can push under 1325.69, a move to test 1319 will be in order.

The futures and fair value will be extremely important Monday night into the opening bell Tuesday.  Watch 1334.62 like a hawk.

The winner of this bull-bear struggle the last couple weeks will surface when the SPX decides to either shoot up thru 1341-1344, or, collapse down thru 1319.  Whichever occurs will tell the story for the subsequent days and the direction of the short term trend. The battle begins at 1331--in the middle of this 1319-1341 decision range.

·         1565 (10/9/07 top)

·         1500

·         1440

·         1427-1428 (5/19/08)

·         1424

·         1419-1420

·         1413

·         1409

·         1407

·         1404

·         1399-1400

·         1391

·         1388-1389

·         1386

·         1377

·         1370-1371

·         1368

·         1365

·         1360-1361

·         1357-1358

·         1354

·         1349

·         1343-1344

·         1341

·         1338-1339

·         1337 (strong S/R)

·         1335-1336 (1336 important)

·         Friday HOD 1334.62

·         1331-1333 (very strong S/R)

·         1329 (very strong S/R)

·         1325-1327 (very strong S/R; 1326 important)

·         Friday LOD 1325.69

·         1318-1323 (very strong S/R zone; 1319 important)

·         1315-1316

·         1314 (very strong S/R)

·         1310-1312 (1312 important)

·         1307

·         1298-1301

·         1294-1295

·         1286-1287

·         1252 (9/14/08 pre-LEH bk)

·         1220-1225

·         1192 (9/15/08 post-LEH bk)

·         1140

·         987

·         666 (3/6/09 bottom)