SPX Support, Resistance (S/R), Moving Averages and Other Key Levels for Trading the Week of 8/18/14

SPX support, resistance (S/R), moving averages and other important levels are provided for trading the week of 8/18/14. Levels shown in bold are strong resistance and support. Bold and underlined levels are very strong and important S/R. The SPX closing and intraday all-time highs occurred on 7/24/14 three weeks ago. The 1991 palindrome top remains in place. The 676 palindrome printed on 3/9/09 identified the multi-year bottom.

The markets are in a recovery rally since the Friday, 8/8/14, intraday low at 1904.78; so remember the 1905 level moving forward. The rally occurs with Russian President Putin's soothing words requesting a peaceful resolution to the Ukraine civil war. More goosing occurs last week with additional Putin happy talk. Then on Friday last week, 8/15/14, news that Ukraine troops have attacked a Russian military convoy inside Ukraine territory sent equities into a tailspin with the major indexes losing over -1% in 90 minutes time. What the Ruskies give, the Ruskies take away.

A key win for bulls is the SPX moving above the 200 EMA on the 60-minute chart at 1948.77 signaling bullish markets for the hours and days ahead. This is a bear killer. Bears need the SPX under 1949 pronto or they will continue to crumble. Price begins on Monday tucked under the 50-day MA resistance at 1957.06 and above the 20-day MA support at 1951.67. Bulls win above 1957. Bears win under 1952. The sideways fight continues at 1952-1957. The SPX closes at 1955 two days in a row and will pivot from this perch. Note how price is playing around at June highs so use these levels as a key gauge of market strength, or lack thereof.

For Monday, the bulls need to touch the 1964 handle and an upside acceleration occurs taking price into the 1970's where a breach of 1976 resistance will send the SPX up to attack the all-time highs again. The bears need to push under 1941.50 to accelerate the downside which will quickly test 1936-1937 support. A move through 1942-1963 is sideways action for Monday and may be the order of the day considering that it is such a wide range.

Note the air pocket between 1951 and 1924. Thus, if the bears push below the 1947-1952 support zone, and especially under Friday's 1942 low, 1924 is likely. 10 trading days remain in August so pay attention to the starting number at 1930-1931 here forward to see if a negative or positive month is on tap. Watch the 20 and 50-day MA's and the 200 EMA on the 60-minute since these critical moving averages identity the winner going forward.

1991 (7/24/14 All-Time Intraday High: 1991.39) (7/24/14 Intraday High for 2014: 1991.39)

1989

1988 (7/24/14 All-Time Closing High: 1987.98) (7/24/14 Closing High for 2014: 1987.98)

1987

1986 (7/3/14 Intraday Top: 1985.59)

1985 (7/3/14 Closing High: 1985.44)

1984

1982

1980

1979

1978

1977

1976

1974

1973

1970

1968 (6/24/14 Intraday Top: 1968.17)

1965

1964.04 Previous Week’s High

1964.04 Friday HOD

1964

1963 (6/20/14 Closing High: 1962.87)

1962

1961

1960

1959

1958

1957.06 (50-day MA)

1956 (6/9/14 Intraday Top: 1955.55)

1955.06 Friday Close – Monday Starts Here

1955

1951.67 (20-day MA)

1951 (6/9/14 Closing High: 1951.27)

1949

1948.77 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

1947

1942

1941.50 Friday LOD

1940

1937

1936

1931

1930.67 August Begins Here

1929

1928.89 Previous Week’s Low

1928

1925

1924 (5/30/14 Intraday Top: 1924.03) (5/13/14 Closing High: 1923.57)

1923

1920.07 (20-week MA)

1920

1919

1918.37 (100-day MA)

1912

1910

1907

1902 (5/13/14 Intraday Top: 1902.17)

1901

1897 (5/13/14 Closing High: 1897.45) (4/4/14 Intraday Top: 1897.28)

1894

1891 (4/2/14 Closing High: 1890.90)

1889.91 (150-day MA; the Slope is a Keystone Cyclical Signal)

1889

1886

1885

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

1882.20 (10-month MA; a major market warning signal)

1882

1880

1879

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

1877

1874

1872

1871

1868

1867.43 (200-day MA; not tested for 19 months extremely odd behavior)

1867

1865

1862

1859

1855.01 (12-month MA; a Keystone Cyclical Signal) (the cliff)

1855

1853

1852

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

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

1841.71 (50-week MA)

1841

1840

1839

1838

1837

1835

1832

1831

1828

1827

1824