SPX Support, Resistance (S/R) and Moving Average Levels for Trading the Week of 10/1/12

SPX support, resistance, moving averages and other levels of import are provided below. The 9/14/12 morning price spike, the day after the Bernanke bazooka, placed the intraday and closing highs for the year thus far at 1475 and 1466, respectively. The SPX closed under the 20-day MA at 1441.58 on Friday so this provides the bears with a small feather in their cap. Price may want to touch the underside of the 10-day MA at 1452 early in the new week of trading but this is out of the question as long as price stays under the 20-day MA.

For the SPX starting at 1441, the market bulls need to push up over 1447 to ignite an upside acceleration. The touch of 1447 will surely lead to the back test of the 10-day MA and a test of 1453 R. The bears need to push under 1436 to begin a downside acceleration. This move would immediately test the critical 200 EMA on the 60-minute chart at 1433-ish.  Remember last week when price came down to test the 200 EMA at 1431-1433 and bounced strongly, the bulls stick-saving the markets and preventing severe failure.  If 1431-1433 fails, the 1424 should occur in quick order, then a further move down to test the strong support guantlet at 1403-1419.  The key level in that range is the 50-day MA at 1412. A move thru 1437-1446 is sideways action for Monday.

For Keystone's algorithm, Keybot the Quant, the buoyancy in utilities will likely position Keybot to want to flip to the long side at Monday's opening bell. One of the key elements the quant is watching is SPX 1447. If 1447 and higher prints, Keybot will likely flip to the long side, if the SPX stays under 1447, Keybot will likely remain short.

·         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

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

·         1465

·         1461

·         1460

·         1457

·         1453

·         1452.16 (10-day MA)

·         1447.13 Friday HOD

·         1447

·         1444

·         1441.58 (20-day MA)

·         1441

·         1440.67 Friday Close – Monday Starts Here

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

·         1438

·         1435.60 Friday LOD

·         1435

·         1433.28 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·         1433

·         1431

·         1429

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

·         1424

·         1422

·         1419

·         1416

·         1413

·         1412.09 (50-day MA)

·         1409

·         1406 (5/29/08 HOD)

·         1404

·         1403

·         1399

·         1394

·         1391

·         1389