SPX Support, Resistance (S/R), Moving Averages and Other Key Levels for Trading the Markets the Week of 5/20/13

SPX support, resistance (S/R), moving averages and other important levels are provided below for trading the week of 5/20/13. The bulls are on a rampage higher using the poor economic data and lackluster top line company sales numbers as bull fuel. In these counter-intuitive markets, good news is good news and bad news is good news since that means more Fed and BOJ QE to pump equity markets higher.  Traders completely ignore lower commodities and manufacturing data for the last couple months. The SPX closes at new all-time intraday and closing highs at 1667.47, up +17% this year.  It is truly amazing to witness the power of the central bankers. For Monday, the bulls only need to see a smidge of green in the Sunday night futures and it is off to the races higher once again with the SPX headed into the 1670's. The bears need to push under 1652.50 to accelerate a move lower. A move through 1653-1667 is sideways action for Monday.

Key support below is 1661, 1649-1650, 1633-1634, 1626-1627 (also the previous week's low), 1623, 1618, 1614 (20-day MA is 1513.54 and rising), 1607 (200 EMA on the 30-minute chart is 1607.02 and rising) and 1597-1600 (where May began). Market signals such as BPSPX, SPXA150R and trader complacency and lack of fear all indicate a significant market top at hand but the central banker money will not permit any downside. The thrust yesterday in the markets was due to the dollar/yen moving above 103+ (BOJ QE is weakening the yen) and the Fed's Kocherlakota basically stating full steam ahead for Fed QE. The four-week upthrust is a near parabolic move higher with the SPX jumping over 120 handles now moving upwards at a pace of 30 handles per week. These are not your Grandfather's markets. The bulls have been smart to ride the central banker bus the whole way higher. Short-sellers are on a milk carton now since no one dares go against the Fed and BOJ.

Wednesday is a key day with Chairman Bernanke speaking and also the FOMC Minutes. Pre-holiday bullishness typically occurs the day or two in front of a three-day holiday weekend (reference Keystone's Pre-Holiday Indicator on the Other Market Signals page) which is Thursday and Friday. A full moon occurs Friday and markets are typically bullish moving through the full moon (reference Keystone's Full Moon Indicator on the Other Market Signals page) so there appears nothing except blue skies ahead for the unstoppable bulls. There are nine trading days remaining in May which started at 1598. "Sell in May and Go Away," the ole Wall Street adage, is overridden by the central bankers actions as well.

·         1667 (5/17/13 All-Time Intraday High: 1667.47) (5/17/13 All-Time Closing High: 1667.47) (5/17/13 Intraday HOD for 2013: 1667.47) (5/17/13 Closing High for 2013: 1667.47) (Previous Week’s High: 1667.47)

·         1667.47 Friday HOD

·         1667.47 Friday Close – Monday Starts Here

·         1661

·         1652.45 Friday LOD

·         1650

·         1649

·         1639.73 (10-day MA)

·         1634

·         1633

·         1627 (Previous Week’s Low: 1626.74)

·         1626

·         1624

·         1623

·         1620

·         1618

·         1617

·         1614

·         1613.54 (20-day MA)

·         1607.02 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

·         1600

·         1599

·         1598 (May begins at 1597.57)

·         1597

·         1593 (4/12/13 Market Top: 1593.30)

·         1589

·         1586

·         1583

·         1581.90 (50-day MA)

·         1581

·         1579

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

·         1569

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

·         1564

·         1563

·         1561

·         1556

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

·         1552

·         1551

·         1548

·         1547.27 (20-week MA)

·         1546

·         1544

·         1539

·         1536.80 (100-day MA)

·         1536

·         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)

·         1495.67 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1495

·         1494.88 (10-month MA)

·         1489

·         1485

·         1481

·         1477.97 (200-day MA)

·         1476

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

·         1474.19 (12-month MA; a Keystone Cyclical Signal) (the cliff)

·         1472

·         1468

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

·         1465

·         1461

·         1460

·         1459.73 (50-week MA)

·         1457

·         1456

·         1453

·         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 (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