SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 4/8/13

SPX support, resistance, moving averages and other important levels are highlighted below for trading the week of 4/8/13. A resistance ceiling cluster exists at 1557-1561 so the market behavior to start the new week will show if the bulls can punch up through this level to return the broad indexes to bullish upside, or, if the bears maintain this resistance ceiling here on out.  Going into last week, the SPX had printed a new all-time closing high at 1570.25 and the consensus was that the all-time high at 1576.09 would fold like a cheap suit. However, the bulls printed a new intraday high for 2013 at 1573.66 falling two points shy of a new all-time high for the SPX.  So the SPX has printed a new all-time closing high over the last week but is not yet able to print a new all-time intraday high.

The SPX closed last week at 1553 which represents the market tops from both 2000 and 2007 so the move up or down from 1553 holds significance moving forward.  The SPX fell under the critical 200 EMA on the 60-minute chart at 1545.89 but the bulls recovered buying the dips believing in the unending Fed money spigot. The 1546 is also strong horizontal support. Bad things will happen to the broad indexes if 1546 is lost.  The low for last week and for Friday was 1539 so this level holds significance for bears this week.  There is strong support at 1531 and the 50-day MA is at 1531.11 so this confluence of support will act as a magnet and wants to pull price down for a test.  Thus, the key S/R levels to watch are 1574, 1570, 1565, 1560, 1553, 1546, 1539 and 1531.  Any move through any level leads to the next level in the same direction.

For the SPX starting at 1553, the bulls need to punch through 1560-1561 and the test of 1565 will occur quickly with the bulls on easy street once again.  The bears need to push under 1540 which will initiate a downside acceleration to the 1531 support test in quick order. A move through 1541-1558 is sideways action for Monday.  The price behavior at the 20-day MA at 1557.35 is key. Bulls win above the 20-day MA. Bears win below the 20-day MA. Q1 earnings season begins this week. Markets are typically weak moving through the new moon which is Wednesday. FOMC Minutes are Wednesday with Retail Sales, PPI, Consumer Sentiment and JPM and WFC bank earnings all hitting on Friday for a dramatic ending to the week.

·         1576 (10/11/07 All-Time Intraday High: 1576.09)

·         1574 (4/2/13 Intraday HOD for 2013: 1573.66) (Previous Week’s High: 1573.66)

·         1571

·         1570 (4/2/13 All-Time Closing High: 1570.25) (4/2/13 Closing High for 2013: 1570.25)

·         1569

·         1565 (10/9/07 Market Top: 1565.15)

·         1564

·         1563

·         1561

·         1560.38 (10-day MA)

·         1559.98 Friday HOD

·         1557.35 (20-day MA)

·         1556

·         1553.28 Friday Close – Monday Starts Here

·         1553 (10/31/07 Top: 1552.76) (3/24/00 Top: 1552.87)

·         1551

·         1548

·         1546

·         1545.89 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·         1543

·         1539.50 Friday LOD

·         1539 (Previous Week’s Low:  1539.50)

·         1531.11 (50-day MA)

·         1531

·         1528 (3/24/00 Closing Top: 1527.46)

·         1525

·         1524 (12/11/07 Top: 1523.57)

·         1521

·         1520

·         1518

·         1516

·         1514

·         1512

·         1509

·         1505

·         1503

·         1500

·         1498 (12/26/07 Top: 1498.85)

·         1495

·         1489.65 (20-week MA)

·         1489

·         1485

·         1481

·         1479.09 (100-day MA)

·         1476

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

·         1472

·         1468

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

·         1465

·         1464.09 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1461.64 (10-month MA)

·         1461

·         1460

·         1457

·         1456

·         1453

·         1447

·         1446

·         1444

·         1441

·         1440.99 (200-day MA)

·         1440.74 (12-month MA; a Keystone Cyclical Signal) (the cliff)

·         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)

·         1427.23 (50-week MA)

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

·         1424

·         1422

·         1419

·         1416

·         1414

·         1413

·         1409

·         1406 (5/29/08 HOD: 1406.32)

·         1404

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

·         1402

·         1399

·         1397

·         1394

·         1391

·         1388

·         1385

·         1380