SPX S/R for Week of 6-13-11

SPX S/R for the week of 6-13-11. If market bears can drive three points lower after Monday's opening bell, then an acceleration south will occur again. Market bulls need to get above Friday's high to place the markets back in buy mode.

The critical 1258 number represents the start of the year for the SPX. The Nasdaq Composite, $COMPQ, turned negative on the year on Friday.  The QQQ, at 54.64, managed to close the week only pennies above the starting year number of 54.46. The Russell 2000, $RUT, providing insight into small caps, also turned negative on the year with a 779.54 print, four points under the starting number for 2011 of 783.65.  The Dow Industrials remain somewhat elevated as compared to the other indexes, in reference to the start of year numbers, indicating that traders are getting defensive preferring the perceived safety of blue chips, and divvy's for income, over the riskier small cap and growth stocks.

Losing the 1268.28 number would be critcial in Monday's session, it would surely drive the indexes lower overall, and a V bottom event would be expected from one of the support levels listed below.  Support at 1258-1259 is strong, and, considering it is the starting number for the year, should it fail, marked increased negativity will come into  the broad markets and a realization that weakness will continue for the weeks and months ahead.

·         1319

·         1316

·         1314

·         1311-1312

·         1306-1307

·         1298

·         1295

·         1292-1293

·         1289

·         HOD Friday was 1288.60

·         1286

·         1282

·         1279

·         1277

·         1273

·         1270

·         LOD Friday was 1268.28

·         1268

·         1262

·         1258-1259

·         1257.64 is the starting number for 2011

·         1252 (9/14/08 pre-LEH bk)

·         1247

·         1242

·         1235