SPX Support, Resistance (S/R), Moving Averages and Other Important Levels for Trading the Week of 12/1/14

SPX (S&P 500) support, resistance (S/R), moving averages and other important levels are provided for trading the week of 12/1/14. 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 2075.76 on 11/28/14 and the SPX all-time closing high is 2072.83 on 11/26/14.

For Monday with the SPX starting at 2068, the bulls need to touch the 2076 handle and bingo, the SPX will accelerate to 2080 plus in a heartbeat. The market bears need to push below the strong 2065 support and a downside acceleration will occur into the 2050’s. A move through 2066-2075 is sideways action to begin the week. The bears can start the week in their favor if they push the S&P futures down -3 and more overnight.

The parabolic move higher in stocks continues fueled by the global central banker collusion with the new all-time historic high printing on Friday. The central bankers are the market. Everything has gone the bull’s way since the mid-October bottom. In early December, tax loss selling typically occurs which sends stocks lower into a lull period and then there is a typically a recovery into year end. So if the bears have a tiny window to fight back it is now over the next week or two.

The bullish seasonality factors such as the third year of the presidential cycle (now into Fall 2015) and years ending in ‘5’ (2015) are encouraging the bulls to chase prices higher. In addition, a major percentage of the stock buybacks occur in the last two months of the year, November and December, so this further boosts stocks. Also, the huge moves higher in AAPL and MSFT, with traders willing to buy regardless of price, send the stock indexes higher especially the Nasdaq Indexes.

Keystone’s 80/20 rule says 8’s typically lead to 2’s, and if 2080 is taken out the 2120’s would be on the table. The stock market euphoria is at fevers pitch with the VIX remaining tame at 13.33. The bears need the VIX above the 200-day MA at 13.82 to create selling pressure in equities. The CPC and CPCE put/call ratios have printed lows over the last few days verifying complacency in markets. Traders and investors know the Fed and global central bankers will always pump the stock markets with easy money so there is no reason for any worry or concern. The elevated CBOE SKEW is flashing caution signs.

Price needs to back kiss the 20 and 50-day MA’s moving forward; especially the 20-day. The 20-day MA is 2043 and rising and the 50-day MA is 1986 and rising. December begins at 2068 so this level is key as the year draws to a close. The bulls remain in firm control supported by the never-ending central bank money-printing. As long as everyone maintains confidence in the central bankers the party continues indefinitely.

For the bears, a breach of the strong 2065-2067 support gauntlet is a big deal and would send price down to test the strong 2056-2057 level which is a gap fill; call it the 2052-2057 zone. Since price is on an elevated island for the last five days, price may come down to 2057-ish and immediately collapse to 2052 and lower, falling through the gap, to create an island reversal pattern.

2076 (11/28/14 All-Time Intraday High: 2075.76) (11/28/14 Intraday High for 2014: 2075.76)

2075.76 Previous Week’s High

2075.76 Friday HOD

2075

2074

2073 (11/26/14 All-Time Closing High: 2072.83) (11/26/14 Closing High for 2014: 2072.83)

2071 (11/21/14 Intraday High: 2071.46)

2070

2069

2068

2067.56 Friday Close – Monday Starts Here

2067.56 December Begins Here

2067

2065.06 Friday LOD

2065

2064.75 Previous Week’s Low

2064

2057

2056 (11/18/14 Intraday High: 2056.08)

2054

2053

2052

2051

2049

2046 (11/13/14 Intraday High: 2046.18)

2043.25 (20-day MA)

2042

2041

2040

2039

2038

2035

2034

2032

2031

2030

2025

2024

2023.04 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

2023

2019 (9/19/14 Intraday High: 2019.26)

2018

2016

2014

2012

2011 (9/18/14 Closing High: 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

2001

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)

1985.78 (50-day MA)

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

1984.64 (20-week MA)

1983

1982

1980.15 (100-day MA)

1980

1978

1976

1973

1970

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

1965

1964

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

1962

1961.32(150-day MA; the Slope is a Keystone Cyclical Signal)

1961

1960

1958

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

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

1949.15 (10-month MA; a major market warning signal)

1949

1947

1942

1940

1937

1936

1935.78 (200-day MA)

1931

1928

1926.87 (12-month MA; a Keystone Cyclical Signal) (the cliff)

1925

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

1920

1917

1916.91 (50-week MA)

1912

1910

1906

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)

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