SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 6/17/13

SPX support, resistance (S/R), moving averages and other important levels are provided below for trading the week of 6/17/13. The SPX closes exactly at the strong 1626-1627 S/R level so the move up or down is important and should lead to a further move in that direction. Note the strong confluence and battleground at 1626-1631 encompassing the starting print for June, the 200 EMA, the 10-day MA and the strong S/R levels at 1626, 1627 and 1631. Bulls are happy above 1631 while bears rejoice under 1626. The 1634 level remains important but 1636 has taken a stronger precedence now. A firm ceiling is formed by the 20-day MA at 1642.16. The bulls need to punch up through 1641-1642 on Monday and it is smooth sailing for higher numbers with a test at 1649-1650 occurring next.

On the bear side, a drop under 1626 will indicate that the markets are in trouble from the start. If the 1623-1624 fails on Monday, the downside will accelerate to tag 1618 and then set up a test for the 50-day MA at 1613.54.  Note how price is moving through a bracket formed by the 20-day MA above and 50-day MA below, thus, happy bulls above 1642 and happy bears under 1614. The battleground at 1614-1642 continues to tighten moving forward (20-day MA is dropping and 50-day MA is rising) forcing a decision this week for markets. The move out of this 20 and 50-day MA bracket is very important since it confirms the preferred direction and price can run at least 40 to 60 handles further in the preferred direction. The previous week's highs and lows provide a final confirmation of the winner, bull or bear.

A move through 1625-1640 on Monday is sideways action and will likely indicate that markets want to maintain a sideways posture until the FOMC rate decision, forecasts and press conference on Wednesday afternoon. Very simply, the directional move from the 1626-1627 S/R will tell a lot from the opening bell. The importance of the 200 EMA at 1629.10 cannot be understated. Bad things will happen to equity markets if the SPX stays under 1629. Bulls will have no worries if they can send price back above 1629 and keep it above.

·         1687 (5/22/13 All-Time Intraday High: 1687.18) (5/22/13 Intraday HOD for 2013: 1687.18)

·         1675

·         1674

·         1673

·         1669 (5/21/13 All-Time Closing High: 1669.16) (5/21/13 Closing High for 2013: 1669.16)

·         1666

·         1661

·         1659

·         1655

·         1652

·         1651

·         1650

·         1649 (Previous Week’s High: 1648.69)

·         1647

·         1642.16 (20-day MA)

·         1640.80 Friday HOD

·         1640

·         1639

·         1636

·         1634

·         1633

·         1632

·         1631 (June begins at 1630.74)

·         1629.12 (10-day MA)

·         1629.10 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

·         1629

·         1627

·         1626.73 Friday Close – Monday Starts Here

·         1626

·         1624

·         1623.96 Friday LOD

·         1623

·         1620

·         1618

·         1617

·         1614

·         1613.54 (50-day MA)

·         1611

·         1609

·         1608 (Previous Week’s Low: 1608.27)

·         1607

·         1600

·         1599

·         1598

·         1597

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

·         1589

·         1586

·         1583

·         1579

·         1578.42 (20-week MA)

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

·         1571.74 (100-day MA)

·         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

·         1546

·         1544

·         1539

·         1536

·         1531

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

·         1525

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

·         1522.74 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1521

·         1520

·         1518

·         1516

·         1514

·         1513.22 (10-month MA)

·         1512

·         1509

·         1505

·         1503

·         1500.74 (200-day MA)

·         1500

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

·         1495

·         1493.18 (12-month MA; a Keystone Cyclical Signal) (the cliff)

·         1489

·         1485

·         1483.42 (50-week MA)

·         1481

·         1476

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

·         1472

·         1468

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

·         1465

·         1461

·         1460

·         1457

·         1456