SPX S/R 2/9/12

The SPX has moved up thru all the important moving averages.  Price also moved up thru the strong resistance areas from 1326 thru 1344.  The market bulls must be given credit for their strength and power for the rally move.  The XLK, Nasdaq 100 and Nasdaq Composite Indexes continue to print higher highs matching the highs from eleven years ago.

The Dow Industrials Index, $INDU, has closed above the closing high from 4/29/11 at 12811.  But interestingly, the Dow has not yet closed above the intraday HOD from 5/2/12 at 12928. The last two days the Dow has punched up above 12928 intraday, only to drop backwards again and not yet achieve a closing high above 12928. If the Dow closes above 12928 it will have officially takent out all 2011 numbers to the upside and will be firmly at highs not seen since 2008, before the epic crash. Thus, there is a mini drama ongoing with the Dow at 12928.

But back to the SPX.  For today, Thursday, the market bulls only need a point higher to take out the 1351 level and launch additional upside fun. 1354 is very strong overhead resistance so that would be another big feather in the bulls cap if they can move above but this level should put up a strong fight. The market bulls need to drop under 1342 and the broad market selling will accelerate.  A move thru 1343-1349 is sideways action.  The futures are currently flatter than a newlywed's souffle. Markets are tentative in front of the BOE and ECB rate decisions and the ongoing Greek drama.

·        1404

·        1399

·        1391

·        1389

·        1386

·        1377

·        1371 (5/2/11 Intraday HOD)

·        1370

·        1368

·        1365

·        1364 (4/29/11 Closing High)

·        1361

·        1360 (5/3/11 Gap)

·        1357

·        1354

·        Wednesday HOD 1351.00

·        Wednesday Close 1349.96

·        1349

·        1347

·        1344

·        Wednesday LOD 1341.95

·        1341

·        1339

·        1338

·        1337

·        1336

·        1333

·        1332

·        1331

·        1330

·        10-day MA 1329.60

·        1329

·        1327

·        1326

·        1323

·        1322

·        1321

·        1320

·        1319

·        20-day MA 1318.07

·        1318

·        1316

·        1315

·        1314

·        1312

·        1309