SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 5/6/13

SPX support, resistance (S/R), moving averages and other important levels are provided below for trading the week of 5/6/13. The bulls sound the trumpets, throw the confetti and proclaim never-ending blue skies ahead since the Fed, BOJ, ECB and BOE will money print until the cows come home.  The SPX moved above 1600 for the first time in history and the Dow Industrials moved above 15K, however, the 15K hats that were distributed for the historic event, received with cheers from the trading floor, were hidden in brief cases and back pockets by the end of the day as the Dow closed under 15K.

The SPX launches like a rocket on Friday as short-sellers, using the 1600 psychological level as their land in the sand, capitulate giving up at attempting to short this central banker-induced stock market.  This short-covering fuel, along with lower volatility, and a weaker yen, created the upside orgy.  The gap up creates air between 1598 and 1613 so it is important for bulls to hold the 1613-1614 support, otherwise, a drop to 1597-1598 can occur just as fast as the gap up. Obviously, the 1618.46 and 1614.42 all-time high levels are a key focus this week.

The most important big picture support levels are 1613-1614, 1597-1598, 1576, 1563 and 1552-1553. The critical 200 EMA on the 60-minute chart is 1572.82 sloping upwards and considering last week's low, the 20-day MA at 1577.54 and strong 1576 support, a confluence is formed at 1573-1581. This serves as a key gauntlet of support for the new week of trading. Bulls remain on easy street above 1581 while bad things will happen to the markets if the 1573-1581 gauntlet fails. For Monday, with the SPX starting at 1614, the bulls need to punch up through 1618 again, and more new all-time highs several handles higher will occur in quick order.  The bears need to retrace Friday's move, a formidable task, but not impossible, especially considering that 1598-1613 is all air; a move under the 1597-1598 support will accelerate the SPX downwards to 1593 in a heartbeat. A move through 1599-1617 is sideways action.

·         1618.46 Friday HOD

·         1618 (5/3/13 All-Time Intraday High: 1618.46) (5/3/13 Intraday HOD for 2013: 1618.46) (Previous Week’s High: 1618.46)

·         1617

·         1616

·         1615

·         1614.42 Friday Close – Monday Starts Here

·         1614 (5/3/13 All-Time Closing High: 1614.42) (5/3/13 Closing High for 2013: 1614.42)

·         1613

·         1600

·         1599

·         1598

·         1597.60 Friday LOD

·         1597 (May begins at 1597.57)

·         1593

·         1589

·         1587.34 (10-day MA)

·         1586

·         1583

·         1581 (Previous Week’s Low:  1581.28)

·         1579

·         1577.54 (20-day MA)

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

·         1572.82 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

·         1569

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

·         1564

·         1563

·         1561

·         1557.96 (50-day MA)

·         1556

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

·         1552

·         1551

·         1548

·         1546

·         1544

·         1539

·         1536

·         1531

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

·         1525

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

·         1523.84 (20-week MA)

·         1521

·         1520

·         1518

·         1516

·         1515.77 (100-day MA)

·         1514

·         1512

·         1509

·         1505

·         1503

·         1500

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

·         1495

·         1489.57 (10-month MA)

·         1489

·         1485

·         1482.90 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1481

·         1476

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

·         1472

·         1469.77 (12-month MA; a Keystone Cyclical Signal) (the cliff)

·         1468

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

·         1465

·         1464.15 (200-day MA)

·         1461

·         1460

·         1457

·         1456

·         1453

·         1447

·         1446

·         1445.62 (50-week MA)

·         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) (2013 Begins at 1426.19)

·         1424

·         1422