SPX Support, Resistance (S/R), Moving Averages and Other Important Levels for Trading the Week of 8/12/13

SPX support, resistance (S/R), moving averages and other important levels are provided for trading the week of 8/12/13. Last week, the SPX did not move above the prior week's highs at 1710, nor did price drop under the prior week's lows at 1681. Thus, the previous week's numbers carry clout for the new week, and weeks, ahead. Bulls win big above 1709.24 and bears win big under 1684.91. In the last couple days of trading, mainly Thursday and early Friday morning, the SPX teased 1699-1700 seven times only to be rejected each time, so there is a sturdy ceiling at the psychological 1700 right now, and a move above 1700 would strongly embolden the bulls to make a run at 1709-1710. The SPX is in a sideways range through 1685-1700 for the last three days so bulls win above 1700 and bears win under 1685.

Keystone's proprietary trading algorithm, Keybot the Quant, is short through the weekend but the markets remain a coin flip moving into the new week. The tight bands on the SPX daily chart will resolve and the ramifications are huge since a 20 to 60 handle move will likely result in a few days time. Thus, this time next week the SPX will likely be at either the 1720's and higher, or 1660's and lower. The new week ahead may perhaps be the most important trading week of the entire year since markets must decide on a direction, and if down, the highs from one-week ago may not be seen again for a very long time. Price closed at the 20-day MA at 1691.74 so pay close attention to this critical market metric. Bulls win above 1692, bears win below 1692.

For Monday, the bulls need to push up through the 1699-1700 ceiling and it is blue skies above with a run to 1707 and then 1709-1710 on tap. The bears need to push under the strong 1685-1687 support gauntlet to accelerate the downside. Markets are in serious trouble if 1685 is lost and a test down to the 200 EMA on the 60-minute chart at 1678 will occur quickly. A move through 1687-1698 is sideways action to begin the new week. The tension mounts.

·         1710 (8/2/13 All-Time Intraday High: 1709.67) (8/2/13 Intraday HOD for 2013: 1709.67) (8/2/13 All-Time Closing High: 1709.67) (8/2/13 Closing High for 2013: 1709.67)

·         1709 (Previous Week’s High: 1709.24)

·         1708

·         1707

·         1706

·         1701

·         1699.42 Friday HOD

·         1699

·         1698

·         1697

·         1696

·         1695.79 (10-day MA)

·         1693

·         1692

·         1691.74 (20-day MA)

·         1691.42 Friday Close – Monday Starts Here

·         1691

·         1687 (5/22/13 Intraday High Top: 1687.18)

·         1686.02 Friday LOD

·         1686

·         1685 (Previous Week’s Low: 1684.91)

·         1684

·         1683

·         1681

·         1680

·         1678

·         1677.69 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

·         1676

·         1675

·         1672

·         1669 (5/21/13 Closing Top: 1669.16)

·         1666

·         1661

·         1659

·         1655

·         1654

·         1652.36 (50-day MA)

·         1652

·         1651

·         1650

·         1649

·         1647