SPX S/R 6-6-11 Forward

For Monday, 6-6-11, watch 1313 on the upside, if attained, the SPX should go into a melt-up and accelerate the buying.  If the SPX loses only two points after the open, however, and loses the 1298 handle, the bears will continue to sell these markets and the selling will accelerate.  The March intraday low is 1249 and closing low is 1259 so watch these levels for future support. The year started at 1258, and the pre-Lehman bankruptcy number is 1252.  The 200 MA is 1248.  The 10-month MA is 1271 and 12-month MA is 1238. A failure of 1238 represents a return to a secular bear market for the indexes.

If 1298 fails, the SPX will try to put up a fight and support the index at 1292, but, in all liklihood, the bears will move it south to the confluence area of 1238-1259 as the days tick by.

Movement thru the 1298 to 1313 zone tomorrow without resolution either up thru 1313 or down thru 1298 represents sideways sloppy markets and potential sideways action until the economic data and other news hits hard on Wednesday and Thursday.

·         1565 (10/9/07 top)

·         1525

·         1500

·         1440

·         1427 (5/19/08)

·         1424

·         1419

·         1413

·         1409

·         1407

·         1404

·         1399

·         1389

·         1370

·         1365

·         1360

·         1357

·         1354

·         1350

·         1345

·         1337

·         1333

·         1331

·         1329

·         1326

·         1323

·         1321

·         1319

·         1316

·         1314

·         HOD Friday 1312.94

·         1311-1312

·         1306-1307

·         1298

·         LOD Friday 1297.90

·         1295

·         1292-1293

·         1286

·         1282

·         1279

·         1270

·         1259

·         1257.64 is the starting number for 2011

·         1252 (9/14/08 pre-LEH bk)

·         1220-1225

·         1192 (9/15/08 post-LEH bk)

·         1140

·         987

·         666 (3/6/09 bottom)