SPX Support, Resistance and Moving Average Levels for Trading the Week of 9/24/12

SPX support, resistance and moving average levels are provided for the days ahead. The SPX begins at 1460 traveling sideways last week as one minute Spain was asking for a bailout, then the next minute they were not. The ECB's bond-buying money-pumping power cannot be unleashed unless Spain asks for help. A Spain bailout announcement means up markets; Spain deciding to wait before asking for the bailout is down markets. The closing high for this year at 1465.77 is an important number moving forward. On Friday, the price action poked up thru 1465.77 but could not close above to create a new closing high. In addition, 1465 is strong resistance (numbers in bold are stronger S/R levels than the others), so a mini gauntlet of resistance sits at 1465-1467. If bulls touch 1467 tomorrow, they will not look back. The SPX will jump higher to test the 1474.51 intraday and intrayear high.

The market bears need to see red futures tonight since price closed near the lows of the day for Friday at 1460-ish. If the SPX drops less than a point at the open, that will lead to a stronger downside acceleration to test the 10-day MA at 1453-ish. If this fails, then price will seek 1446 and perhaps 1440. A move thru 1461-1466 is sideways action for Monday and will likely correspond to more Spain wishy-washy news. Markets need resolution to the Spain bailout drama this week, otherwise, the markets will decide and that move would be negative.

Thus, bulls need to touch 1467, bears need to push under 1459.50. Keep an eye on the 20-day MA at 1433 since price always goes back for a touch.

·         1500

·         1499 (12/26/07 top)

·         1496 (12/27/07 gap fill needed: 1495.05-1496.66)

·         1489

·         1485

·         1481

·         1479

·         1478 (12/31/07 gap fill needed: 1475.83-1478.49)

·         1476

·         1475 (9/14/12 Intraday HOD for 2012: 1474.51)

·         1472

·         1468

·         1467.07 Friday HOD

·         1466 (9/14/12 Closing High for 2012: 1465.77)

·         1465

·         1460.15 Friday Close – Monday Starts Here

·         1460

·         1459.51 Friday LOD

·         1457

·         1453

·         1452.69 (10-day MA)

·         1448

·         1446

·         1444

·         1441

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

·         1438

·         1435

·         1433

·         1432.64 (20-day MA)

·         1431

·         1429

·         1428.10 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

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

·         1424

·         1422

·         1419

·         1416

·         1413

·         1409

·         1406 (5/29/08 HOD)

·         1404.16 (50-day MA)

·         1403

·         1399