SPX Support, Resistance (S/R) and Moving Average Levels for Trading the Week of 1/22/13

SPX support, resistance (S/R), moving averages and other key levels are highlighted below. The SPX is now only 90 points from a new all-time high. The RUT and Dow Transportation Indexes reached all-time highs last week.  SPX 1468 led to 1472 which led to 1476. Once thru 1476, the strong 1485 resistance was next and price closed above on Friday. This 1485-1486 is key, 1485.98 now serves as the closing and intraday highs for 2013 thus far. Any move higher thru here and 1496 is next. The only gap remaining for the SPX is at the 1496 level. If this gap is filled, price has no reason to move any higher based on gap movement alone.

Keystone's 80/20 rule says 8's lead to 2's, so the closes above 1480 now lead the way to 1520's. However, the bears would have a chance tomorrow if they can immediately reverse this upward thrust and push the SPX under 1480. Otherwise, SPX 1500+ is likely on tap based on the current action.  The rally is very long in the tooth and with overbot conditions and negative divergence now in play, a pull back would be expected. The AAPL earnings on Wednesday is likely going to dictate if the SPX moves above 1500, or not. A break thru 1486 leads to 1496, which then would lead to 1505, then 1524.

The bulls only need to see a smidge of green in the futures and an upside move to 1496 will be underway after the opening bell. The bears need to keep the futures negative and then push the SPX under 1476 after the opening bell, if so, this will create a quick downside acceleration to 1472, then 1468.  A move thru 1477-1485 is sideways action. Watch the 10-month and 12-month MA's over the coming weeks since a cross of the 10 down thru the 12 would be a negative indicator for markets moving forward. Bulls will be happy if the 10 stays above the 12.

·         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: 1495.05-1497.66)

·         1489

·         1486 (1/18/13 Closing High for 2013: 1485.98) (1/18/13 Intraday HOD for 2013: 1485.98)

·         1485.98 Friday HOD

·         1485.98 Friday Close – Tuesday Starts Here

·         1485

·         1481

·         1476

·         1475.81 Friday LOD

·         1475 (9/14/12 Intraday HOD for 2012: 1474.51)

·         1473

·         1472

·         1470.68 (10-day MA)

·         1468

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

·         1465

·         1461

·         1460

·         1457

·         1453.11 (20-day MA)

·         1453

·         1447.85 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·         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

·         1430.36 (20-week MA)

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

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

·         1428.92 (100-day MA)

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

·         1424

·         1422.76 (50-day MA)

·         1422

·         1419

·         1416

·         1414

·         1413

·         1409

·         1408.85 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1406 (5/29/08 HOD: 1406.32)

·         1404

·         1403.75 (10-month MA)

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

·         1402

·         1400.97 (12-month MA; a Keystone Cyclical Signal) (the cliff)

·         1399

·         1397

·         1394.45 (200-day MA)

·         1394

·         1392.99 (50-week MA)

·         1391

·         1388

·         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