SPX Levels of Support and Resistance

The S&P 500 closed at a crucial point this week.
Resistance is clearly defined at 1295 and Support at 1260.
A break of support at 1260 could bring the index to the 1230ish level, and a break above 1295, should propel the market to the 1350 mark.
Absentee of any news, the path of least resistance is to the upside.

S&P at year end.

The S&P is at the same level it started a year ago, despite huge volatile periods.
The Federal Reserve, the US Credit Downgrade by Standard and Poors, the deterioration situation in Europe, Congress Debt Ceiling debacle, Japan's Earthquake, all these events contributed to the huge market swings, but the market remained within a range and it's flat for the year.

Range Trading Action

The S&P has been trading in a range for the last couple of months, and ended the 3rd quarter close to the bottom of that range. The first trading day of the 4th quarter has been positive 80% of the time, which suggests a green day for Monday. What we really have to look in our trading is to focus on a break of the range to either side. If we see the price breaking above 1230, the trend should be long and conversely if the price action breaks below 1100, the trend would be bearish for more selling ahead. On the other hand, the market can remain trading withing a range for longer periods of time, as we saw from February through July. Until the new trend is defined, quick profit taking is a must.

Death Cross

The death cross triggered this month will confirm if the market is unable to break resistance at the 50 EMA, in which case support at 1100 could be broken.

S&P Broke Support

Yesterday the S&P broke the head & shoulders support around 1260, indicating more selling ahead.
The next level of support is around 1175 and if that one doesn't hold we could go as low as 1060

Sell in May and go away.

Basically worked like a charm, as the market has been trading within a downtrend channel since the beginning of the month.
1335 - 1338 is the number to break the channel to the upside and go long, in the meantime the 100 Day Moving Average is offering resistance, so selling the rallies is still in play.

S&P Selloff

The S&P 500 sold off since early on, losing 25 points, before the buyers stepped in at 1160 around the 20 day moving average.
1150-1160 is the threshold for the bulls and bears.

SPX Jobless report selloff

Today the market lost all of this week gains after a disappointing jobless report which came at 500,000, selling pressure brought the index below it's 20 and 50 day moving averages, but at least closed above the 1070 level.
The whole week the market has traded in a range between 1070 and 1100, so let's use those levels for initial support and resistance.

SPX analysis for August 13, 2010

On the weekly time frame we can clearly see that in July the market tested the 38.2% Fibonacci retracement of the May highs and now it looks like it is heading again that way, below the 38.2% retracement level, there is not much support and the index can easily go down and test the 950 mark at the 50% Fibonacci retracement level.
In order to avoid this scenario, the bulls will need to bring the index to 1090 above the daily 50 day moving average, close and remain above it.
Support remains at 1060 and resistance at 1090/1100 area.

Today the market broke down the upper trend line crashing down 30 points below the 1100 mark all the way to support at 1090 and resting at the 50 day moving average.
This action broke the uptrend that started the beginning of July and opened the doors for more selling ahead.
The next level of support is at 1060 and resistance is at 1100 first and then at 1120 at the 200 day moving average.

SPX analysis for 8/9/2010

Since the begining of July the market has been in a rising wedge, which can spell trouble for the bulls as it has been stalling around 1130 at the June highs.
Technically everything looks good as the index has been closing above both the 50 & 200 day moving averages.
Tomorrow's FOMC meeting results will definitely tell us which way the market should follow.
1150 is the next resistance level and on the way down support is at 1107 first, then around 1090

SPX analysis for 7/30/2010

After disappointing GDP numbers, the market sold off early on, but managed to gain back all the loses to close flat, still the SPX closed below the 200 day moving average for the 3rd consecutive day in a row, but is holding above the 1100 mark and above the 20 and 50 EMA's as well.
If the bulls are going to take charge, they will need to do so quickly, before more damage is done, which could bring the index down to 1060.
Resistance is first at 1120, then at 1130 and support at 1060

SPX analysis for 7/27/2010

The market opened with a gap up but started selling off right after the opening bell, and closed red forming a bearish reversal candle.
It is sitting at support right at the 200 day simple moving average around 1114, a pullback should find support first at 1100, then at 1080 at the 50 day moving average and if that one is broken next is 1060.
Resistance is June highs around 1130

SPX on Europe Banks Stress Tests

Well folks, today the market finally closed above the 1100 mark area, signaling some strength as we can see on the daily chart, the index is clearly posting higher highs and higher lows.
Also the SPX has broken above the downtrend line and closed above the 50 day moving average as well, all signs of strength.
If the market can hold above the 1100 mark, it most likely will trigger the bears stops and easily reach the next resistance level at 1120 at the 200 day moving average and then June highs at 1130
On the way down support remains at 1060

SPX, Earnings + Bernanke

The 50 day moving average around 1090 proved to be strong resistance for the market, coupled with Bernanke's comments about the economy was enough for the sellers to step in and started the afternoon sell off which ended 20 points below the hod.
Support level is around 1060 and resistance at the 50 day moving average at 1090.

SPX Rally

A beautiful day for the market, the S&P opened above yesterday's close and rallied 30+ points on average volume, breaking 1st resistance level at 1040 and then 1050 to close at 1060, setting the stage for a continuation of this rally for the next couple of days.
The 50 day moving average is at 1100, which is the next logical resistance level, support is now at 1050
Keep an eye on the markets reaction on tomorrow's Jobless Claims news.

S&P Volatility

Very volatile day for the market, the S&P touched support at 1010 during the overnight session and from there rallied 30+ points to a little over resistance at 1040, most of the bounce was in the pre-market session though.
Once the buyers were exhausted, the market sold off 24 points filling the opening gap, which was very profitable for the ones that went short.
Note that the moving average death cross is firmly in place, but despite that occurrence, the market managed to post a higher high and a higher low.
Support remains at 1010 and resistance at 1040

SPX analysis for 7/2/2010

The market had an initial negative reaction to the employment numbers, but rallied after wards reaching the 50 day moving average, unfortunately the rally didn't hold and 15 minutes before the closing bell, sold off closing at 1022 .
So far the S&P has closed down 9 days in a row and everyone is saying that the market is oversold, (which it is) and due for a bounce, but we know how the market works and never does what everyone is expecting.
Support remains at 1010 and resistance at 1040
The 50 day moving average is already touching the 200 day moving average, which entails what's coming next.

SPX New lows

The S&P touched the mentioned support at 1010, before bouncing off to close at 1027, creating a red hammer, still closed negative, but gave some hope to the bulls for tomorrow's trading day.
Everyone is keeping an eye on the employment report, which will decide tomorrow's market direction.
Volume should be low as most traders are getting ready for the long holiday weekend.
Support still is at 1010 and resistance at 1040

SPX End of 2nd Quarter

With today's closing of the SPX below the 1040 level of support, we officially can say that we are in a bear market.
Also today was the last day of the 2nd quarter, and the majority of the institutional investors during their "window dressing" they sold their holdings, which helped to the downturn and corroborated that they weren't interested in holding positions in this type of market.
As I mentioned yesterday, also notice that the 50 day moving average is closer and almost ready to cross the 200 day moving average, which is major sign for technical analysis.
The next level of short term support is 1010 and resistance now is 1040
Looking at the bigger picture, there is nothing to really hold this market until around 875 - 900