SPX S/R Week of 3/26/12

SPX price closed below the 10-day MA on Friday. The 1389 support level failed on Friday which should have ushered in further downside towards the 20-day MA but the big spike in oil price, caused by the lower Iranian export news, sent oil, commodities, gold and equities higher. A weaker dollar sends markets higher and a stronger dollar sends markets lower.

For Monday trading, watch the price of copper, if it moves up so will the markets, if copper moves down the markets move down.  Watch the Sunday night futures for the early tell. For the SPX starting at 1397, the bulls have an easier road ahead since only two points higher is needed, to move up and over 1399 (strong R), and that will ignite a strong push up for the bulls towards 1403 and 1406.  The market bears need to see the dollar stronger, copper weaker, and the SPX to move under 1387, if so, the broad markets will accelerate lower.

If the SPX touches 1400 on Monday, it is likely that Keystone's algorithm, Keybot the Quant, will flip back to the long side. 

·         1440 (5/19/08 Intraday High for 2008: 1440.24)

·         1427 (5/19/08 Closing High for 2008: 1426.63)

·         1425 (Gap Fill from 2008)

·         1424

·         1422

·         1419

·         1414

·         1413

·         1410

·         1406 (5/29/08 HOD)

·         1403

·         1401

·         Friday HOD 1399.18

·         1399

·         10-day MA 1397.61

·         Friday Close 1397.11

·         1394

·         1391

·         1389

·         Friday LOD 1386.87

·         1386

·         20-day MA 1381.12

·         1378

·         1372

·         1371

·         1370 (5/2/11 Intraday HOD for 2011: 1370.58)

·         1368

·         1366

·         1364 (4/29/11 Closing High for 2011: 1363.61)