SPX S/R Week of 4/9/12

SPX support and resistance shows a confluence of support at 1370-1371 so that represents a line in the sand; failure will open up the door down to 1350-ish. The bulls will try to hold this support level with all their might.  The Friday Jobs Report was weaker than expected and futures plummeted so a lower opening is anticipated for Monday. The close below the 20-day MA on Thursday is bearish.

The 1389, 1386 and 1378 support/resistance levels should see considerable action on Monday.  Although a large down move is expected for the markets on Monday, traders are already wanting to hear about further quantitative easing, the junkies need more crack cocaine, not only from the Fed or ECB, but from China. China triple R easing will immediately bounce copper, commodities and equities markets so lots of drama is ahead for markets. The market bears are cruising currently. Economic data is back loaded this week from Wednesday thru Friday. Double A kicks off the earnings season as usual on Tuesday after the bell.

·        1414

·        1413

·        1410

·        1408

·        10-day MA 1407.29

·        1406 (5/29/08 HOD)

·        1404

·        1403

·        Thursday HOD 1401.60

·        1401

·        1399

·        20-day MA 1401.14

·        Thursday Close 1398.08

·        1398

·        1394

·        Thursday LOD 1392.92

·        1391

·        1389

·        1386

·        1378

·        1372

·        1371(5/2/11 Intraday HOD for 2011: 1370.58)

·        50-day MA 1370.05

·        1370

·        1368

·        1366

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

·        1363

·        1361

·        1358

·        1356

·        1351

·        1347