SPX Support, Resistance (S/R) and Moving Average Price Levels for Trading the Week of 9/4/12

The SPX is moving thru a sideways range of 1399-1413 for eight days. Last Thursday, price fell thru the entire range, and on Friday, the SPX covered the entire range once again. The move below 1399, or above 1413, is a significant tell moving forward. The August monthly number printed on Friday and shows the SPX up for three months in a row. Note that the 10 and 20-day MA are providing overhead resistance, as well as the 1410 level, before a break thru at the strong 1413 R is attempted. The 20-day MA at 1407.40 is very important concerning market direction moving forward. On the bear side, 1406 and 1403 offer strong support for price, if lost, then the lower channel range at 1399 will be tested. Price remains elevated above the 50-day MA at 1377.

For Tuesday, as traders return from the Labor Day holiday, with the SPX starting at 1407-ish, the bulls need to push up thru 1413 to launch an upside acceleration to 1419 in quick order. The bears need to push the SPX under 1399 and a downside acceleration will occur taking price into the low 1390's. 1391 would lead to 1385 which would lead to a test of the 50-day MA and strong support at 1375-1377. A move thru 1400-1412 is sideways action for Tuesday.

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

·        1427 (5/19/08 Closing High for 2008: 1426.63) (8/21/12 Intraday HOD for 2012: 1426.68)

·        1424

·        1422

·        1419 (4/2/12 Closing High for 2012: 1419.04)

·        1413.09 Friday HOD

·        1413

·        1410

·        1409.43 (10-day MA)

·        1407.40 (20-day MA)

·        1406.58 Friday Close – Monday Starts Here

·        1406 (5/29/08 HOD)

·        1403

·        1399

·        1398.96 Friday LOD

·        1395.88 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·        1394

·        1391

·        1389

·        1385

·        1378

·        1377

·        1376.53 (50-day MA)

·        1375

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

·        1370

·        1369

·        1366

·        1365.27 (150-Day MA; the Slope is a Keystone Cyclical Signal)

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

·        1363

·        1362.70 (20-week MA)

·        1362

·        1361.25 (100-day MA)

·        1358

·        1357