SPX S/R Week of 3/5/12

The SPX moves higher but the recent price action over the last 11 days shows a sideways move thru 1356-1376, a 20-point range.  The intraday high three days ago is 1378.04 which was only a few minute pop but now serves as overhead resistance. The fun begins on Monday starting at SPX 1370.  The market bulls need to move up and over 1374.50, if so, an upside acceleration will kick in and price will attack the 1378.04 high in quick order.

The market bears have a slightly easier road to hoe needing a drop of 3 or 4 points.  Note the confluence formed at 1366 with strong horizontal support, the 10-day MA, and Friday's LOD, thus, if 1366 is lost, the downside will accelerate with large block sellers entering the markets in force.  The SPX will immediately test 1363.61 and likely fail, heading lower to see which support level at 1363, 1361 or 1358 can stop the drop. Once price drops under 1366, keep an eye on the 20-day MA since a test of this support is likely on tap.  A move thru 1367-1373 is sideways action in Monday's trade.

·        1404

·        1399

·        1391

·        1389

·        1386

·        1378 (1378.04 HOD 2/29/12)

·        1376

·        Friday HOD 1374.53

·        1372

·        1370 (5/2/11 Intraday HOD 1370.58)

·        Friday Close 1369.83

·        1368

·        Friday LOD 1366.42

·        1366

·        10-day MA 1365.95

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

·        1363

·        1361

·        1358

·        20-day MA 1357.19

·        1356

·        1351

·        1347

·        1345

·        1344

·        1341

·        1339

·        1338

·        1337

·        1336

·        1333

·        1332

·        1331

·        1330