The SPX support, resistance and moving average levels are provided below. Last week Keystone highlighted the five-year anniversaries of the all-time closing and intraday market tops. On Friday, 10/19/12, the 25-year anniversary of Black Monday in 1987 occurs where the Dow Industrials fell 508 points, -22%. What a day it was.
In the here and now, the SPX closed twenty-one pennies above the 50-day MA so watch this closely moving forward. For Monday, the 1424-1429 is a very strong confluence of support. Thus, the bulls need to remain above to begin a rally. The bears need to collapse down thru and lots more downside will occur. If the SPX falls thru 1425.50 on Monday, and remains that way for ten minutes, the markets will accelerate lower with 1419 occurring in quick order. If the bulls can maintain price above the 1429 level, the 1433 strong resistance will be attacked. Price will either receive a spank down from 1433 or punch up thru which places the 1438-1441 resistance cluster in play. If the SPX punches up thru 1441, an upside acceleration will occur quickly sending price to test 1446 and the 20-day MA at 1429. A move thru 1427-1437 is sideways action.
Think of the uber strong S/R at 1433 as a fulcrum of a seesaw. If the bears are big and strong, the see saw will move to the short side, and price will fall down thru 1424-1429 and plummet lower. If the bulls are big and strong, the seesaw will move to the long side, and price will punch up thru 1438-1441 and rally higher. The 1403-1419 zone is a sturdy support firewall. If it is penetrated, the bulls have major problems on their hands. If 1403 fails, the selling in the markets will move into panic mode. The 50-day MA at 1428.38 and 200 EMA from the 60-minute chart at 1439.56 are major decision makers for the markets and you can gauge the bull versus bear strength by directly following these two critical levels.
· 1576 (10/11/07 top)
· 1565 (10/9/07 top)
· 1553 (10/31/07 top)
· 1524 (12/11/07 top)
· 1520
· 1518
· 1516
· 1511
· 1505
· 1500
· 1499 (12/26/07 top)
· 1496 (12/27/07 gap fill needed: 1495.05-1496.66)
· 1489
· 1485
· 1481
· 1479
· 1478 (12/31/07 gap fill needed: 1475.83-1478.49)
· 1476
· 1475 (9/14/12 Intraday HOD for 2012: 1474.51)
· 1472
· 1468
· 1466 (9/14/12 Closing High for 2012: 1465.77)
· 1465
· 1461
· 1460
· 1457
· 1453
· 1451
· 1448.83 (20-day MA)
· 1447
· 1446
· 1445.49 (10-day MA)
· 1444
· 1441
· 1440 (5/19/08 Intraday HOD for 2008: 1440.24)
· 1439.56 (200 EMA on 60-Minute Chart a Keystone Turn Signal)
· 1438.43 Friday HOD
· 1438
· 1435
· 1433
· 1431
· 1429
· 1428.59 Friday Close – Monday Starts Here
· 1428.38 (50-day MA)
· 1426 (5/19/08 Closing High for 2008: 1426.63)
· 1425.53 Friday LOD
· 1424
· 1422
· 1419
· 1416
· 1413
· 1409
· 1406 (5/29/08 HOD)
· 1404
· 1403
· 1399
· 1397
· 1394
· 1391.53 (20-week MA)
· 1391
· 1389
· 1385
· 1384.21 (100-day MA)
· 1382.64 (150-day MA; the Slope is a Keystone Cyclical Signal)
· 1381.21 (10-month MA)
· 1378
· 1375
· 1371(5/2/11 Intraday HOD for 2011: 1370.58)
· 1370
· 1369.45 (200-day MA)
· 1369
· 1366
· 1364 (4/29/11 Closing High for 2011: 1363.61)
· 1363
· 1362
· 1359.72 (12-month MA; a Keystone Cyclical Signal)
· 1358
· 1357
· 1355
· 1351
· 1348.26 (50-week MA)
· 1348