SPX Support, Resistance (S/R), Moving Averages and Other Important Levels for Trading the Week of 5/5/14

SPX support, resistance (S/R), moving averages and other important levels are provided for trading the week of 5/5/14. Levels shown in bold are strong resistance and support. Bold and underlined levels are very strong and important S/R. The SPX exceeded the all-time closing high on Friday but dropped back unable to print the new closing high. Interestingly, the previous Friday jobs report in early April exhibited the same intraday behavior with equities launching higher but then falling on their sword as the session played out.

May begins at 1884 so this level will be key for the next four weeks. Price is well elevated above all the moving averages in all time frames so mean reversion is required moving forward. The equity markets remain elevated from the continuing Fed and BOJ easy money booze party. Traders remain complacent, as evidenced by the low volatility and low put/call ratio's, typically indicating a market topping out. Traders believe there is no reason for worry or concern since the Fed will always create a stock market moving higher.

For the SPX on Monday starting at 1881, the bulls need to push up through the critical 1891 resistance again and price will catapult to 1897-1900 in very quick order. The bears need to push under 1878-1879 to accelerate the downside which will tag 1874 immediately then seek out the strong 1868 support in short order. A move through 1880-1890 is sideways action to begin the new week of trading. The 20-day MA is 1862.46 and 50-day MA is 1862.72 forming a confluence that may act as a magnet level for price to seek and test. Also factoring in the 200 EMA on the 60-minute at 1865.80 and strong support at 1868, an epic battle is likely to take place at the 1862-1868 support gauntlet this week that will decide the fate of bulls and bears. Bulls have no worry or concern as long as price stays above 1865.80. Bears take full control of markets under 1865.80.

1897 (4/4/14 All-Time Intraday High: 1897.28) (4/4/14 Intraday High for 2014: 1897.28)

1894

1891.33 Previous Week’s High

1891.33 Friday HOD

1891 (4/2/14 All-Time Closing High: 1890.90) (4/2/14 Closing High for 2014: 1890.90)

1890

1889

1886

1885

1884 (3/21/14 Intraday Top: 1883.97) (3/7/14 Intraday Top: 1883.57)

1883.95 May Begins Here

1882

1881.14 Friday Close – Monday Starts Here

1879

1878.50 Friday LOD

1878 (3/7/14 Closing High: 1878.04)

1877

1876

1875

1874

1872

1871

1868

1867

1865.80 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

1865

1863

1862.72 (50-day MA)

1862.46 (20-day MA)

1862

1859

1855

1853

1852

1851 (1/15/14 Intraday Top: 1850.84)

1850.61 Previous Week’s Low

1849 (12/31/13 Intraday High Top for 2013: 1849.44)

1848.36 Trading for 2014 Begins Here

1848 (1/15/14 Closing High: 1848.38) (12/31/13 Closing High for 2013: 1848.36)

1846

1845

1843

1842

1841

1840.49 (20-week MA)

1840

1839

1838.26 (100-day MA)

1838

1837

1835

1832

1831

1828

1827

1824

1820

1816

1814 (11/29/13 Intraday Top: 1813.55)

1812 (12/9/13 Intraday Top: 1811.52)

1810

1809.40 (150-day MA; the Slope is a Keystone Cyclical Signal)

1809 (12/9/13 Closing Top: 1808.37)

1808

1807 (11/27/13 Closing Top: 1807.23)

1806

1803

1801

1800.47 (10-month MA; a major market warning signal)

1800

1799 (11/18/13 Intraday Top: 1798.82)

1798 (11/15/13 Closing Top: 1798.18)

1796

1793

1791

1788

1785

1783

1782

1781

1777.08 (200-day MA; not tested for 1 year extremely odd behavior)

1777

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

1774.73 (12-month MA; a Keystone Cyclical Signal) (the cliff)

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

1770

1768

1763

1762

1759

1756

1755.45 (50-week MA)

1752

1748

1747

1745

1740

1737

1733 (10/17/13 and 1018/13 Gap-Up: 1733.15-1736.72)

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

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

1722

1720

1711

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

1708

1706

1703

1700

1698

1697

1696

1693

1692

1691

1689

1688

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

1686

1685

1683

1682

1680

1675

1672

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

1666

1664

1661

1659

1657

1652

1650