SPX S/R Week of 10-31-11

SPX support and resistance shows the important resistance cluster at 1285-1287. On Thursday and Friday both, price punched up thru, only to be spanked back down. The behavior here will tell the short term direction. If the market bulls can punch up thru to see 1288 and higher, and close there, the upside has plenty more oomph for upside.

The Monday session is EOM thus the monthy charts will receive a new data point. One of Keystone's Secular Signals is the SPX 12-month MA cross. The 12-month MA is now at 1277-1278. Thus, if price closes above 1277-1278 at the Monday close, the market bulls can pop the champagne corks, this would be a huge development for market bulls and shift this signal to forecast a secular bull market ahead.  The market bears will fight to push price under 1277-1278 with all their might on Monday.

For Monday, the SPX begins at 1285, if 1287 is touched, all the indexes will continue to jump higher several more handles in short order and the bulls may as well start popping those champagne corks. Market bears need to break 1277 support, if so, the downside will open up, and large block sellers will enter the markets. A move thru 1278-1286 is sideways slop. Note how the range on Friday, was only ten points (1277-1287), due to the lower volatility.  The VIX fell under 30, now under 25, thus, the large-point moves seen each day in the indexes should subside somewhat.

·        1321

·        1318

·        1316

·        1314

·        1312

·        1307

·        1305

·        1301

·        1300

·        1298

·        1296

·        1295

·        1293

·        1292

·        1291

·        1289

·        Friday HOD 1287.08

·        1287

·        1286

·        Friday Close 1285.09

·        1285

·        1282

·        1280

·        1278

·        Friday LOD 1277.01

·        1277

·        1272-1273 (LT S/R)

·        1270

·        1268

·        1267

·        1260

·        1259

·        1258 (1257.64 is the starting number for 2011)

·        1257 (3/16/11)

·        1254

·        1252 (9/14/08 pre-LEH bk)

·        1249 (LOD 3/16/11; failure at this level 8/4/11)

·        1247

·        1244

·        1242

·        1240

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

·        1233 (LOD 12/16/10)

·        1229

·        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)

·        1215