SPX ~ Testing Yearly Pivot Support

The SPX correction from the January 4 high to the May 20 low, so far is at 20.93% and is now testing the yearly support zone YSZ 3840/3704. The YSZ has been the expected longer term correction support since January. But not without some unexpected turns along the way.

Should support hold at the YSZ, this would align with the typical historical yearly pivot zone corrections. There is always the possibility that this correction turns into a multi-year correction. But for now, the expectation is for the YSZ to test and hold and a new bull market to unfold.

Within the YSZ is a confluence of M/Q support pivots, MS 3815 and QS 3784. This last week price fell into the YSZ, tested the MS 3815 then reversed and closed back above the WSZ. The SPX may not be done testing the YSZ. If so, then the SPX should fail on any rally back into the MSZ 4049/3993 or the QSZ 4136/4053 and drop back down to retest the YSZ. A break back above the QSZ could potentially take the SPX back up to the YP 4413. The YP would prove to be a battle ground and Bull/Bear inflection point. Good Luck & Trade Safe!

SPX ~ Pivot Zones

SPX ~ Yearly Pivot Zones

SPX ~ May Monthly Pivot Zones

The SPX confirmed a monthly downtrend on Friday, which is now three monthly trends from the January high, also reconfirming the quarterly downtrend. (See: July 1, 2010 & October 3, 2011) On this first trading day of May the SPX dropped down into the QSZ 4136/4053 and reversed closing higher. I’m going out on a limb here and say the correction is over and the SPX continues up to new all time highs…. If the QSZ fails, then look for the next level of support at the yearly support zone 3840/3704.

The May monthly pivot zones are on the chart below. The MSZ 4049/3993, is just below the QSZ, with resistance at the MP 4283. A break above the MP would take the SPX up into the YP 4413, QP 4488 and the MRZ 4518/4573. As always Good Luck and Trade Safe.

SPX ~ Pivot Zones