SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 12/24/12

SPX support, resistance (S/R), moving averages and other levels of import are provided below. The SPX placed an intraweek high at 1448 last week and 1444 is serving as sturdy resistance. If 1444 is violated the next stong resistance area is the 1460-1461 ceiling. The SPX closed the week at 1430, above the election day top at 1429 and exactly at where the Fed announced QE4 Infinity and Beyond a couple weeks ago. Price is below where the Fed announced QE3 Infinity in early September at 1438 and also below the very strong resistance ceiling at 1433.

Note the strong confluence of support at 1418-1422 which incorporates several key moving averages, the strong 1419 support, and also the 200 EMA from the 60-minute chart at 1418.46, a key level. If the bulls maintain the SPX above 1418.46, the only worries for the long players will be if there is enough eggnog in the liquor cabinet for the holidays.  The story changes if 1418.46 fails, since bad things will begin happening to the markets.

The 1413 level has served as strong S/R this year and the 50-day is at 1413 so this level takes on importance. For Monday, if the bears move the SPX under 1423, this sets up an immediate test of the critical 1418-1419 support. The bearish downside path from there is 1413, 1409, 1406, 1403, then sub 1400 to the 1391-1394 support. The bulls will try to poke up thru the strong 1444 resistance, if so, the upside will accelerate and the pathway would open to 1460-1461. A move thru 1424-1442 is sideways action. Obviously, the fiscal cliff news bites will dictate direction. Christmas Eve trading is typically an up day on very light volume but this year, all bets are off.

·         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

·         1451

·         1447

·         1446

·         1444

·         1443.67 Friday HOD

·         1441

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

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

·         1435

·         1433

·         1431

·         1430.15 Friday Close – Monday Starts Here

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

·         1429.47 (10-day MA)

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

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

·         1424

·         1422.58 Friday LOD

·         1422

·         1421.10 (20-week MA)

·         1419.99 (20-day MA)

·         1419.15 (100-day MA)

·         1419

·         1418.46 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·         1416

·         1414

·         1413.41 (50-day MA)

·         1413

·         1409

·         1406 (5/29/08 HOD: 1406.32)

·         1404

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

·         1401

·         1399

·         1397

·         1396.39 (10-month MA)

·         1394

·         1391.50 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1391

·         1389.40 (200-day MA)

·         1388

·         1386.83 (12-month MA; a Keystone Cyclical Signal) (the cliff edge)

·         1385

·         1381.76 (50-week MA)

·         1380

·         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

·         1318

·         1316

·         1314

·         1312

·         1308

·         1307

·         1305

·         1300

·         1298