SPX support and resistance shows the Friday close one point below the HOD. If the 1239 level is exceeded on Monday, watch for green futures overnight Sunday, the 1240 and 1242 tests will occur and more than likely the SPX will travel upwards to test 1247. The market bears have a formidable task ahead since they need to touch the 1215 handle to regain control. Note that the critical 1225-1227 S/R cluster gave way to the upside which favors the bulls. In addition, 1233 support has held.
Market bulls are favored now with the happy Europe talk and most importantly last week on Thursday afternoon and Friday, the Fed pumping the quantitiative easing talk. The EU meeting this weekend must deliver an outline of a plan for the markets on Monday morrning, then more concrete details come Wednesday. Since they promised a pony, they must deliver a pony this weekend. The expectation is that the EU meeting results should be satisfactory and enable the bulls to maintain buoyant markets. If this is the case, the 1240, 1242 and 1247 resistance levels will be tested. If the EU meeting disappoints this weekend, the 1225-1227 S/R cluster comes immediately into play again as markets sell off.
· 1270
· 1268
· 1262
· 1259
· 1258 (1257.64 is the starting number for 2011)
· 1257 (3/16/11)
· 1252 (9/14/08 pre-LEH bk)
· 1249 (LOD 3/16/11; failure at this level 8/4/11)
· 1247
· 1242
· 1240
· Friday HOD 1239.03
· Friday Close 1238.25
· 1235 (12/15/10; also HOD 12/7/10 large volume)
· 1233 (LOD 12/16/10)
· 1227 (HOD 11/9/10)
· 1226 (11/5/11)
· 1225
· 1224 (12/7/10 large volume)
· 1222
· 1220 (HOD 4/26/10)
· 1219
· 1217 (4/23/10)
· Friday LOD 1215.39
· 1215
· 1213
· 1210
· 1209 (HOD 4/29/10)
· 1207 (4/29/10 Top)
· 1206
· 1204
· 1201
· 1199
· 1198
· 1196
· 1195
· 1193 (9/15/08 post-LEH bk)
· 1191
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