SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 12/17/12

SPX support, resistance (S/R), moving averages and other key levels are highlighted below.  The SPX closed last week under the 50 and 100-day MA's, as well as under the strong 1416 support/resistance, but above the strong 1413 support. For Monday, the bulls must punch up thru the strong 1419.00-1419.50 resistance gauntlet, if so, an upside market acceleration will occur. The bears need to push down thru the 1411-1413 support to accelerate the downside.  The importance of the 200 EMA at 1411.43 on the 60-minute chart cannot be understated. If 1411 fails, the markets are in major trouble and will be heading substantially lower.  The 1406-1407 level would provide the first support, then 1403, then sub 1400. The 20-day MA at 1407.39 acts as a magnet line. A move thru 1413-1418 is sideways action for Monday; bulls win at 1419 and higher and bears win under 1413.

On the top side, the 1429 election day top is strong resistance, then very strong and important resistance at 1433, which we watched play out last week, then 1438, where QE3 was announced, and tested last week, only to fail, and then 1441.  On the down side, 1403 leads to 1395, then 1391, then the 1385-1388 support guantlet. The 1385 is the waterfall edge for the markets, if that level fails, markets are going to a deep dark place for an extended period of time. The 50-day MA at 1415.09 carries a lot of clout to begin the new week, bulls win above and bears win below.

·         1465

·         1461

·         1460

·         1457

·         1453

·         1451

·         1447

·         1446

·         1444

·         1441

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

·         1438 (9/13/12 Fed Announces QE3 Infinity)

·         1435

·         1433

·         1431

·         1430 (12/12/12 Fed Announces QE4 Infinity and Beyond)

·         1429 (11/6/12 President Obama Election Top)

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

·         1424

·         1422

·         1419.45 Friday HOD

·         1419.14 (20-week MA)

·         1419

·         1416.57 (10-day MA)

·         1416

·         1415.36 (100-day MA)

·         1415.09 (50-day MA)

·         1413.58 Friday Close – Monday Starts Here

·         1413

·         1411.88 Friday LOD

·         1411.43 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·         1409

·         1407.39 (20-day MA)

·         1406 (5/29/08 HOD: 1406.32)

·         1404

·         1403 (9/6/12 ECB Announces OMT Bond-Buying Program)

·         1401

·         1399

·         1397

·         1394.74 (10-month MA)

·         1394

·         1391

·         1388

·         1387.94 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1387.49 (200-day MA)

·         1385.45 (12-month MA; a Keystone Cyclical Signal) (the cliff edge)

·         1385

·         1380

·         1378.71 (50-week MA)

·         1377

·         1375

·         1373

·         1371(5/2/11 HOD for 2011: 1370.58)(8/16/07 LOD: 1370.60)

·         1370

·         1366

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

·         1362

·         1358

·         1357

·         1355

·         1351

·         1348

·         1345

·         1343

·         1341 (7/26/12 Draghi Announces Support for the Euro Starting QE Rally)

·         1338

·         1337

·         1335

·         1333

·         1331

·         1329

·         1326

·         1324

·         1321

·         1319