SPX Support, Resistance (S/R), Moving Averages and Other Important Levels for Trading the Week of 10/27/14

SPX (S&P 500) support, resistance (S/R), moving averages and other important levels are provided for trading the week of 10/27/14. 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 high is 2019.26 on 9/19/14 and the SPX all-time closing high is 2011.17 on 9/18/14.

For Monday with the SPX starting at 1965, the bulls only need a smidge of green in the overnight futures and an upside acceleration will occur after the opening bell. Price will tease the 1968 resistance and if that gives way, 1972-1973 comes quick. The market bears need to push under 1964 to accelerate the downside quickly testing 1960-1962 then lower. A move through 1947-1964 is sideways action to begin the week.

Keystone’s important 12-month MA at 1901 represents a cliff for the markets where a crash and free-fall lower is on the table. The SPX collapsed from the cliff last week but was quickly saved by the Fed’s Bullard promising a QE4 stimulus. The Fed will not permit markets to correct; it's all they got. So the bulls, just like the cartoons, grabbed the proverbial branch sticking out from the cliff and managed to climb back above the cliff again. The Fed is always there to pat the market's behind. The 50-week MA at 1892 serves as a last line of defense for bulls and price held this important support and recovered higher with the relief rally currently in play. Note how price closed directly at the 20-week MA at 1964.25. The pivot from this level is key. Marrying this moving average with the 50-day MA at 1967 and strong horizontal price S/R at 1965 and 1968 creates a formidable resistance gauntlet at 1964-1968. Price is in the neighborhood of the 50-day MA so a touch would be anticipated. If 1968 gives way, price will immediately jump to the starting month number at 1972 with only five days remaining in the month of October. The monthly charts receive a new print on Friday afternoon and the 1972 level determines if the month finishes positively or negatively.

The lower standard deviation band was violated on the SPX daily chart so a move back to the 20-day MA at 1928 was on the table and price has already tagged this level and poked up through. The upper band at 2003 and dropping is on the table if price moves up through the 50-day MA at 1967. A back kiss of the important 200 EMA from the 60-minute chart at 1940 is needed. Overall for the hours and days ahead, bulls remain in control if the SPX remains above the 200 EMA at 1940. Serious market carnage begins again under 1940.

If the bulls come to play and poke up through the 1964-1968 resistance gauntlet, 1972-1973 resistance comes quick. If that gives way, price will target 1978 R next, then above that is the strong 1985-1986 resistance. The bears need to hold the line at the 1964-1968 resistance gauntlet and stop the bulls, otherwise, the bulls are going to gather fuel and continue the upside relief rally far higher. If the bears can push under 1964 support, a quick test will occur at the 100-day MA at 1961 where a bounce or die decision will be made. The 1960-1962 range is a strong support gauntlet. If bears can push under this level, the strong 1958 will fail in quick order and price will seek 1951 support.

Bulls win big above 1972-1973 and a trip back to the all-time highs would be on the table again, especially after markets finish the month of October positively. Bears win big if the upside relief rally can be stopped and price fails at the 100-day MA at 1962. The 1962 failure opens the door to market mayhem again. Thus, the 1962-1973 zone is a battle zone for bulls and bears; a steel-cage death match where the two sides have entered but only one will exit. Bulls win above 1973. Bears win under 1962.

Typically the week before mid-term elections the markets are up. The US elections are Tuesday, 11/4/14. The earnings releases continue with many key companies reporting. Consumer Confidence hits at Tuesday morning at 10 AM EST and markets will pivot. Equities may stagger sideways through the 1962-1973 battle zone described above early in the week since Fed Chair Yellen delivers an important decision concerning the end to QE Infinity and guidance for the ZIRP Forever policy on Wednesday afternoon. Consumer Sentiment is Friday morning which is also Halloween. Will the markets be a trick or treat for the bulls this week? One side will receive a large bag of candy this week but the other side will receive a bag of rocks.

2019 (9/19/14 All-Time Intraday High: 2019.26) (9/19/14 Intraday High for 2014: 2019.26)

2013

2012

2011 (9/18/14 All-Time Closing High: 2011.36) (9/18/14 Closing High for 2014: 2011.36) (9/4/14 Intraday High: 2011.17)

2010

2009

2007 (9/5/14 Closing High: 2007.71)

2006

2005 (8/26/14 Intraday High: 2005.04)

2004

2003 (8/29/14 Closing High: 2003.37)

2002

2000

1999

1998

1997

1995

1993

1991 (7/24/14 Intraday Top: 1991.39)

1988 (7/24/14 Closing High: 1987.98)

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

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

1983

1982

1980

1978

1976

1973

1972.29 October Begins Here

1970

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

1966.94 (50-day MA)

1965.27 Previous Week’s High

1965.27 Friday HOD

1965

1964.58 Friday Close – Monday Starts Here

1964.25 (20-week MA)

1964

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

1962

1961.85 (100-day MA)

1961

1960

1958

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

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

1949

1947

1946.27 Friday LOD

1942

1940.13 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

1940

1937

1936

1933.96(150-day MA; the Slope is a Keystone Cyclical Signal)

1931

1928.29 (20-day MA)

1928

1925

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

1920

1917

1915.30 (10-month MA; a major market warning signal)

1912

1910

1908.60 (200-day MA; not tested for 22 months extremely odd behavior)

1906

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

1901

1900.60 (12-month MA; a Keystone Cyclical Signal) (the cliff)

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

1894

1892.28 (50-week MA)

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)

1882.30 Previous Week’s Low

1882

1880

1879

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

1877

1874

1873

1872

1871

1868

1867

1865

1862

1859

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

1840

1839

1838

1837

1835

1832

1831

1828

1827

1824

1820

1816