SPX S/R 2/24/12

The SPX closed near the highs at the end of the Thursday session. If the market bulls touch 1364.25, and hold it for a few minutes, another upside bull party should launch. The green futures project this rosie path but the open remains three and one-half hours away.  Note that the SPX poked back above the 2011 closing high in yesterday's trade but could not close above, so obviously 1363.61 is very important in today's session. If the 1365 resistance is breached, which is likely if the SPX touches 1364.25, the SPX will likely test the 1370-1371 level, specifically, the 1370.58 intraday HOD from 5/2/11.

The market bears continue to receive a slap in the face each day. The stronger euro leads to a weaker dollar which leads to higher commodities, copper, gold, oil and equities markets. Market bears need to see a stronger dollar if they want to create the spank down that the negative divergence on the daily and minute charts forecast.

The SPX 1354 level is strong support forming a confluence with horizontal support, the 10-day MA and this is also the neckline level of an H&S pattern shown in last evening's charts.

For the bulls, if 1364.25 is touched after the open, price should poke back up thru the 1363.61 and also the 1365 strong resistance.  SPX 1368 resistance may put up a small fight but if price is moving upwards, the 1370.58 provides the true overhead resistance test. The bears need to take the SPX down to test the 1354 level again and see if they can create failure at that level.

·         1409

·         1407

·         1404

·         1399

·         1391

·         1389

·         1386

·         1377

·         1371 (5/2/11 Intraday HOD 1370.58)

·         1370

·         1368

·         1365

·         Thursday HOD 1364.24

·         1364 (4/29/11 Closing High 1363.61)

·         Thursday Close 1363.46

·         1361

·         1360

·         1357

·         10-day MA 1354.27

·         1354

·         Thursday LOD 1352.28

·         1351

·         1347

·         1345

·         1344

·         20-day MA 1341.94

·         1341

·         1339

·         1338

·         1337

·         1336

·         1333

·         1332

·         1331

·         1330