SPX S/R 1/19/12

The SPX list below shows the critical support and resistance levels.  Look at how price worked up thru all the moving average (MA) levels this year.  Quite an impressive start, the rally is reminiscent of October's bullish action.  Just when it looks like the bulls are about to roll over, another up move appears.  SPX 1307 is not a slouch of a level, it is very strong and formidable resistance and price popped up thru without care during the last hour of trading today.

The 1314 thru 1318 zone is a gauntlet, a sturdy ceiling that will put up a far stronger fight than 1307. SPX 1312 is in play for tomorrow since price has closed above 1308 resistance, now support. For Thursday, starting at 1308, the bulls only need to see green futures overnight and another bull party will be on tap with a test of 1312 occurring in short order.  The bears will simply try to prevent a higher print in the morning at all costs, the bears must keep the SPX under 1308, otherwise, they will have another long day. A move thru 1292-1307 is sideways action. 

The SPX is in nose-bleed territory now but the indexes keep surprising to the upside. Extreme caution is warranted. Markets are highly unstable.

·        1347

·        1344

·        1341

·        1337

·        1333

·        1331

·        1329

·        1326

·        1323

·        1321

·        1319

·        1318

·        1316

·        1314

·        1312

·        Wednesday HOD 1308.11

·        Wednesday Close 1308.04

·        1308

·        1307

·        1305

·        1300

·        1298

·        1296

·        1295

·        1293 (10/27/11)

·        1292

·        Wednesday LOD 1290.99

·        1289

·        10-day MA 1288.77

·        1287

·        1286

·        1285

·        12-month MA 1282.58 (One of Keystone’s Major Secular Signals)

·        1281

·        1278

·        1277

·        1275

·        10-month MA 1273.79

·        1272

·        20-day MA 1270.51

·        1270

·        1268

·        50-week MA 1267.69

·        1267

·        1265

·        1261

·        1260

·        1258 (1257.64 start of 2011; 1257.60 start of 2012)

·        200-day MA 1257.60

·        1257 (3/16/11)

·        1255

·        1253

·        1252 (9/14/08 pre-LEH bk)

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

·        1247

·        50-day MA 1246.24

·        1244

·        1242

·        1240

·        1238

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

·        150-day MA 1234.80 (150-Day Slope is One of Keystone’s Secular Signals)

·        1233 (LOD 12/16/10)

·        1229

·        20-week MA 1227.49

·        1227 (HOD 11/9/10)

·        1226

·        1225

·        1224 (12/7/10 large volume)

·        1220 (HOD 4/26/10)

·        1219