SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 10/8/12

SPX support, resistance and moving average levels are provided below; the bold numbers are the strongest S/R levels. On a wide-scale basis the 1457-1461 level is a strong area of S/R as well as the 1399-1419 area. Thus, the bulls are running higher above 1461. The bulls and bears fight it out between 1419 and 1457.  The bears will be growling strongly under 1399.

Bringing the focus closer in, Friday's action shows a high at 1471 that punched thru the closing high for the year at 1465.77. However, the bulls could not punch out a new closing high and price fell down to close just inside the critical gauntlet area at 1457-1461. On Friday, 9/21/12, price also came up to punch thru the 1465.77 but failed to close above. This hints at price exhaustion moving forward.

For Monday, starting at 1461, the bulls need to see a move above 1471 and an upside acceleration will occur, punching thru the very strong 1472 in a heartbeat, moving above the intraday high for this year and then test the strong 1476. Obviously, the bulls will be dancing in the streets.  The market bears need 1457 to fail, if so, a strong downside acceleration will occur taking price immediately lower to test the strong 1444-1450 support area. Anytime a 20-day MA fails as support that is a big deal and a very bearish indication. If price stays above the 20-day MA at 1450.51 the bulls will not be worried.  A move thru 1458-1469 is sideways action to start the week. Pay attention to the 1465.77 closing high for this year thus far.  If the bears come to play and the 20-day MA fails this week, watch the 1440-1441 support level, if this level fails, the bears will obviously be sending markets lower rapidly.

Also of interest, due to the weakness in the utilities sector Friday, is Keystone's algorithm, Keybot the Quant, since if UTIL stays under 481.36 and if the SPX drops under 1457, Keybot will likely flip 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

·         1470.96 Friday HOD

·         1468

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

·         1465

·         1461

·         1460.93 Friday Close – Monday Starts Here

·         1460

·         1457

·         1456.89 Friday LOD

·         1453

·         1451

·         1450.51 (20-day MA)

·         1448.32 (10-day MA)

·         1447

·         1446

·         1444

·         1441

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

·         1439.42 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·         1438

·         1435

·         1433

·         1431

·         1429

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

·         1424

·         1422.37 (50-day MA)

·         1422

·         1419

·         1416

·         1413

·         1409

·         1406 (5/29/08 HOD)

·         1404

·         1403

·         1399

·         1394

·         1391

·         1389