SPX Support, Resistance (S/R), Moving Averages and Other Key Levels for Trading the Week of 11/18/13

SPX support, resistance (S/R), moving averages and other important levels are provided for trading the week of 11/18/13. It was critical that at a minimum price needed to back test the 20-day MA, now at 1765.13, and rising, and two back kisses occur with the 20-day only acting as a trampoline spring board launching the SPX 3 days ago. The upside orgy began when privileged and insider traders received future Fed Chair Yellen's written testimony at lunch time Wednesday, 11/13/13, which displayed her very dovish thinking as suspected. The SPX catapults from 1766 intraday to the 1798 close Friday within 2 ticks of 1800. A 32-handle rally, +1.8%, in 17 hours of trading time, the SPX gaining 2 points per hour ever since Wednesday; quite a welcome for Yellen, the QE Queen. Chairman Bernanke is dropping cash from helicopters but it is now revealed that the pilot of the money chopper is Yellen. In concert with the Fed pumping the stock market, the BOJ beat the yen lower which causes the dollar/yen pair to jump above 100 and took the Nikkei as well as U.S. equities higher. The BOJ will play a big roll in the new week of trading. Last week, the Fed and BOJ central bankers fired both barrels together creating a vertical move in U.S. equities and the Nikkei.

The Fed's easy money is powerful and does not permit markets to correct. The SPX is above the 200-day MA, now at 1637.46, for one-year's time, an unprecedented occurrence. Price always checks back to the 200-day, from above or below, every few months time, at a minimum, but not in these markets. The Fed stimulus is too powerful. For Monday, the bulls only need a smidge of green in the overnight futures and the upside party will continue with an 1800 print for the first time in history and a run towards 1810. The bears must push under the strong support at 1791 to accelerate the downside selling. A move through 1792-1798 is sideways action for Monday.

Strong support below is 1791 and 1775 with very strong support at 1772. The 1756-1763 area is a confluence of support and serves as an important gauntlet moving forward. Bulls will not be concerned about any market pull back as long as they stay above the 1745-1763 zone. Everything is coming up roses for the bulls. If the BOJ weakens the yen further, the market melt-up will continue. Bears need to hold under 1800, otherwise, price will start to seek the 1820's.

1798 (11/15/13 All-Time Intraday High: 1798.22) (11/15/13 Intraday HOD for 2013: 1798.22) (11/15/13 All-Time Closing High: 1798.18) (11/15/13 Closing High for 2013: 1798.18)

1798.22 Previous Week’s High

1798.22 Friday HOD

1798.18 Friday Close – Monday Starts Here

1792

1791

1790.66 Friday LOD

1783

1782

1780

1775 (10/30/13 Market Top: 1775.22)

1772 (10/29/13 Market Closing Top: 1771.95)

1770

1768

1765.13 (20-day MA)

1763

1762

1760.64 Previous Week’s Low

1759

1756.54 November Begins Here

1756

1752

1749.68 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

1747

1745

1737

1736

1733

1730 (9/19/13 Market Top: 1729.86)

1726 (9/18/13 Market Closing Top: 1725.52)

1723.84 (50-day MA)

1722

1720

1710 (8/2/13 Market Top: 1709.67)

1708

1706

1703

1701.12 (20-week MA)

1700

1698

1697

1696

1694.68 (100-day MA)

1693

1692

1691

1689

1688

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

1686

1685

1683

1682

1680

1675

1672

1669.52 (150-day MA; the Slope is a Keystone Cyclical Signal)

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

1666

1664

1661

1659

1657

1652

1650

1649

1647.34 (10-month MA; a major market warning signal)

1647

1646

1640

1639

1637.46 (200-day MA; not seen for 1 year)

1636

1634

1629

1627

1626

1624

1623

1618

1616.48 (12-month MA; a Keystone Cyclical Signal) (the cliff)

1614

1611

1609

1607.62 (50-week MA)

1607

1606

1605

1600

1598

1597

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

1589

1586

1583

1579

1578

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

1569

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

1564

1563

1561

1560 (6/24/13 Intraday Low)

1556

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

1552

1551

1548

1546

1544

1539