SPX S/R 8-29-11

SPX support and resistance is provided below.  SPX price moved above Friday's high after today's open so the move would be expected to accelerate, and it did.  Keystone's SPX:VIX Ratio Indicator moved above 35 at the open today so that points towards a strong up day for the indexes; a triple digit Dow day.

Price blew up thru the 1192-1193 resistance like a hot knife thru butter, and only received its first resistance spank down at the 1197 level. After sideways consolidation, price tested 1199 and convincingly popped up thru at 10:20 AM EST. Thus, the psychological 1200 is now in play and the 1200-1209 zone where the SPX received its slap down 8 or 9 days ago. SPX 1199-1209 is major resistance area so price will have to work hard to move up thru this area, but, if successful, the 1220's are very likely.

First thing is first, however, watch the SPX:VIX 35 level for clues as well as this 1199-1209 resistance zone. The Bradley turn window is in play now as well so an interesting couple days of trading awaits. Local S/R in play the rest of the day is 1188, 1192, 1193, 1195, 1197, 1198, 1199, 1200, 1204 and 1206.

·        1222

·        1220 (HOD 4/26/10)

·        1217 (4/23/10)

·        1209 (HOD 4/29/10)

·        1207 (4/29/10 Top)

·        1206

·        1204

·        1200

·        1199

·        1197

·        1193(9/15/08 post-LEH bk)

·        1192

·        1188

·        1184

·        1183

·        Friday HOD 1181.23

·        1181

·        1179

·        1178

·        1177

·        Friday Close 1176.80

·        1173

·        1168

·        1166