SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 1/7/13

SPX support, resistance (S/R), moving averages and other important numbes for trading are listed below.  The big hooplah on Friday afternoon and thru the weekend is the SPX printing a new five year closing high.  The same celebration occurred in September. However, the intraday highs in 2012 are not yet taken out so watch the 10/5/12 HOD at 1470.96 and the 9/14/12 HOD for 2012 at 1474.51. The 1474.51 is a magic number since that truly establishes a five-year high in all respects. The strong 1476 resistance would lead to 1485 and that would lead to the 1500's. Also of interest is the gap fill at 1476-1479 so price may want to explore these levels if the bulls keep pushing.

Note that the strong 1468 resistance held on Friday. If the bulls push higher to start the new week of trading, the strong 1472 resistance would be the next test. That would set up the test of the five-year intraday high at 1474.51. On the underside, the 1460-1461 support level is a very strong floor. Bears will be able to crack at least a small smile if they can push price under 1460, if not, they got nothing. Friday's low is 1459 so this 1459-1461 guantlet held as support and created a springboard for the bulls to punch higher placing the new closing high.

The bullish rally over the last few days is astounding. The bulk of the move is due to a combination of the new money coming into the markets for the new year, the fiscal cliff resolution (which surprisingly was a national embarassment and did not even address the debt ceiling), and the bullish media hype in general whipping long traders into a strong buying mode.  The support cluster below at 1398-1403 represents the edge of the waterfall, the point of no return for the markets, but at 60 points above, the bulls are drinking wine without worry. For the SPX on Monday, starting at 1466 support, the bulls only need two points, to touch 1468 resistance and the SPX will immediately jump higher to test 1472, then decide if the true five-year high at 1474.51 occurs.  The bears need to push the SPX under the 1459-1461 support cluster to create a downside acceleration which should lead to a test of 1444 in a couple days time.  A move thru 1462-1467 is sideways action.

·         1576 (10/11/07 top)

·         1565 (10/9/07 top)

·         1553 (10/31/07 top)

·         1524 (12/11/07 top)

·         1520

·         1518

·         1516

·         1511

·         1505

·         1500

·         1499 (12/26/07 top)

·         1496 (12/27/07 gap fill needed: 1495.05-1496.66)

·         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 (1/4/13 Intraday HOD for 2013: 1467.94)

·         1467.94 Friday HOD

·         1466.47 Friday Close – Monday Starts Here

·         1466 (9/14/12 Closing High for 2012: 1465.77) (1/4/13 Closing High for 2013: 1466.47)

·         1465

·         1461

·         1460

·         1458.99 Friday LOD

·         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)

·         1435.53 (10-day MA)

·         1435

·         1433

·         1431

·         1430.41 (20-day MA)

·         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)

·         1425.54 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·         1424

·         1423.34 (20-week MA)

·         1422.85 (100-day MA)

·         1422

·         1419

·         1416

·         1414

·         1413

·         1412.23 (50-day MA)

·         1409

·         1406 (5/29/08 HOD: 1406.32)

·         1404

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

·         1402

·         1401.80 (10-month MA)

·         1399.34 (12-month MA; a Keystone Cyclical Signal) (the cliff)

·         1399

·         1397.84 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1397

·         1394

·         1391.23 (200-day MA)

·         1391

·         1388

·         1387.05 (50-week MA)

·         1385

·         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