SPX S/R Week of 11-21-11

SPX support and resistance shows a 12 point range in Friday's trading.  For tomorrow, if the 1211.36 fails, the indexes will tumble lower quickly thereafter.  The 1209.43 Thursday intraday low is worth watching as well and if that fails, the boat is taking on heavy water and sinking fast.

Strong support is provided at 1204, then 1198, 1196 and 1193.  As shown by the previous chart, 1191 is the 50% Fib retracement of the October rally. 1196 is a gap fill target.  Thus, 1191-1196 should offer strong support for price. The market bulls need to touch 1223.51 in the Monday session if they want to get their mojo back.  This is difficult since price must first fight up thru the strong 1220 resistance level. 

Europe remains in turmoil, and each morning now requires watching Italy, France and Spain 10-year yields. The super committee speaks in somber tones. A plan is needed by midnight Monday so the Budget office can score the proposal for the Wednesday deadline. As they say in Brooklyn, "Good luck wit dat." Thus, watch 1220 R and 1210 S; the move from this range will provide your first clue. Losing the Thursday and Friday intraday lows means the broad markets will move much lower quickly, with 1204 and 1198 in sight.

·        1233 (LOD 12/16/10)

·        1229

·        1227 (HOD 11/9/10)

·        1225

·        1224 (12/7/10 large volume)

·        Friday HOD 1223.51

·        1220 (HOD 4/26/10)

·        1219

·        1217 (4/23/10)

·        Friday Close 1215.65

·        1215

·        Friday LOD 1211.36

·        1210

·        Thursday LOD 1209.43

·        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

·        1189

·        1188

·        1183

·        1181

·        1179