SPX 30-Minute Chart Key Support/Resistance Levels Downward Channel

The chart highlights the key support and resistance levels; 1268, 1267, 1261, 1258, 1252, 1247, 1240, 1235, 1227, 1225, 1220, 1216, 1210 and 1209. Remember the nine day sideways triangle thru the 1235-1268 range? Price collapsed out the bottom on Monday, 12/12/11. But Tuesday recovered to take price to the top of that downward-sloping channel, then collapse again. The break from the 1235-1268 channel with the 1235 bottom rail was significant so it is surprising that a back kiss of 1235 did not occur, at least not yet.

Watch to see if the 8 MA moves above the 34 MA today, if so, that will signal the all-clear for upside. The green lines show positive divergence that caused the huge opening bounce yesterday, price was sitting on the launch pad and launched, but the SPX then drifted lower all day long. The green lines want to see another high in price above, or at least to touch 1225.

Note the C&H vibe over the last two days, an upside breakout would target levels such as the 1230 resistance cluster, the 1235 back kiss, and/or the 1240 resistance cluster. Note how the upper rail of the channel and the 1235 level will form a confluence that may serve as a target in the coming days. Price is now moving thru the 1210-1225 sideways channel so the break from this zone is important and telling. Note how yesterday favored the even tighter 1216-1220 sideways range so watch which side price favors out of this channel as well.

Watch to see if the RSI or stochastics move above 50% to verify upwards direction. Projection is lots of choppy sideways ahead for the SPX considering the low holiday volume. Today is OpEx so large volume at the open, and at the close is expected.  Look for a possible test of 1225 today, at that time, the chart can be checked for any negative divergence. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.