SPX S/R 7-29-11

The low GDP number placed markets in a nasty mood.  The 10 month MA at 1289 is a key level.  If 1289 holds, this sour start today would give way to support and index buoyancy, especially on any positive debt ceiling news. If 1289 is lost, the markets are in big trouble.  The 12 month MA, now at 1257 represents the markets falling back into secular bear markets; things will get very ugly.  This 1257-1259 support is also the starting year number.  1286-1287 is sturdy support, losing 1289 is a big negative, losing 1286 is a confirmation of huge trouble for equities. Strong support also exists at 1280 and a gap fill is needed at 1281. Losing the high 1280's is a game changer so watch that closely today. The projection is that it will hold at this support area, and if the politicians get their act together and release some happy news, this move down will be short-lived.  Consumer Sentimnet at 10 AM is a potential market pivot point. If we move under 1286-1289 we are all in a sinking equity boat and the situation will become serious.

·        1337

·        1333

·        1331

·        1329

·        1326

·        1323

·        1321

·        1318

·        1316

·        1314

·        1312

·        1307

·        1300

·        1298

·        1297 (gap fill needed)

·        1295

·        1292

·        1289

·        1287

·        1286

·        1282

·        1281 (gap fill needed)

·        1280

·        1272-1273 (LT S/R)

·        1270

·        1268

·        1262

·        1258-1259 (1257.64 is the starting number for 2011)

·        1257 (3/16/11)

·        1252 (9/14/08 pre-LEH bk)

·        1249 (LOD 3/16/11)

·        1247

·        1242

·        1235 (12/15/10; also HOD 12/7/10 large volume)

·        1233 (LOD 12/16/11)

·        1227 (HOD 11/9/11)

·        1226 (11/5/11)