SPX Support, Resistance (S/R), Moving Averages and other Important Levels for Trading the Week of 8/4/14

SPX support, resistance (S/R), moving averages and other important levels are provided for trading the week of 8/4/14. Levels shown in bold are strong resistance and support. Bold and underlined levels are very strong and important S/R. The SPX all-time intraday and closing highs occurred on 7/24/14 at 1991.39 and 1987.98, respectively; seven trading days ago (the week before last).

Keystone's 80/20 rule says 8's lead to 2's so the breach of 1980+ opened the door to 2020+ but price topped out at 1991 a couple weeks ago and rolled over. The high last week was 1985 so for the next five days, 1985-1986 is formidable overhead resistance. Price has fallen through the 20 and 50-day MA's. The 200 EMA on the 60-minute is 1962 and failed last week igniting substantial market downside. A back kiss of the 200 EMA will occur at some point forward probably on the recovery rally move.

The month of Augst begins at 1931 so jot that number down and watch it as the month draws to an end. Interestingly, the month of August has five Sunday's and five Saturday's which does not happen often. For Monday, with the SPX starting at the 1924-1925 support, the 1931 resistance is in play and 1937 R. If 1937 gives way, price will run to 1942 then decide if a further run higher is warranted to test the important 1949-1954 (50-day MA at 1953.61) resistance zone.

The bears need any amount of weakness, to push under the 1924-1925 support and price will seek a test of Friday's low at 1916 again. The 20-week MA at 1911.94 and 100-day MA at 1910.97, along with horizontal support, create a support gauntlet at 1910-1912. If this fails, price will seek 1902. The 150-day MA teams up with horizontal support to create strong support at 1884. The support cluster at 1848-1858 is key since if that fails, the SPX will go negative on the year. The 12-month MA at 1852.52 is extremely important since if that level fails, equities can remain weak for months and probably a year or two locking in a substantial cyclical bear pattern.

If the 20-week MA at 1911.94 fails, a move to the 50-week MA at 1829.90 is on the table and the 50-week has not been touched in over 2 years highly unusual market behavior (a reversion to the mean is desperately needed). Key S/R is 1991, 1988, 1985-1986, 1976, 1973, 1968, 1963, 1960-1961, 1949-1950, 1924, 1912, 1902, 1897, 1891, 1884, 1878, 1872-1874, 1848, 1841, 1831, 1828, 1808, 1803 and 1800.

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)

1984.85 Previous Week’s High

1984

1982

1980

1979

1978

1977

1976

1974

1973

1970.00 (20-day MA)

1970

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

1965

1964

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

1962

1961.93 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

1961

1960

1959

1957

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

1953.61 (50-day MA)

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

1949

1942

1940

1937.35 Friday HOD

1937

1931

1930.67 August Begins Here

1925.15 Friday Close – Monday Starts Here

1925

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

1923

1920

1919

1916.37 Friday LOD

1916.37 Previous Week’s Low

1916

1912

1911.94 (20-week MA)

1910.97 (100-day MA)

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

1886

1885

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

1883.43 (150-day MA; the Slope is a Keystone Cyclical Signal)

1882

1880

1879.21 (10-month MA; a major market warning signal)

1879

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

1877

1874

1872

1871

1868

1867

1865

1862

1859

1858.14 (200-day MA; not tested for 19 months extremely odd behavior)

1855

1853

1852.52 (12-month MA; a Keystone Cyclical Signal) (the cliff)

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

1840

1839

1838

1837

1835

1832

1831

1829.90 (50-week MA)

1828

1827

1824

1820

1816

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

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

1810

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

1808

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

1806

1803

1801

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