Harmonic Resistance at 1226-1232 on SPX

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There are multiple harmonic and chart resistances right in the 1226-1232 range on the S&P 500. I am viewing this as possibly a "point of no return" for the markets for quite some time. Inside the pink oval on the chart I have shown 5 harmonic resistance levels though at least one more of significance could be added.

Inside that little zone are the:

- 50% retracement level from the July high to August low
- 61.8% retracement of the 2007-2009 bear market
- A=C for an upward ABC correction since the July 9th 2011 low
- 141.4% extension/external retracement of the "B" wave of the upward ABC since Aug 9th
- 38.2% retracement of the July 2010 to May 2011 rally
- major horizontal chart support which has been a breakthrough and resistance point for 4 severe market swoons since year 2000

Keep that chart level permanently on your charts for future reference should the market continue to chop around these levels.

The next major horizontal chart support zone is the 1050-1070 area. Should the market break through the Aug 9th low, I think it will likely move down to that 1060ish area before a possible rally attempt.

Below 1060 the next major support is the 940 area. I am keeping those area bolded on my charts for future reference as we may see the markets move sharply to these levels if/when support levels are broken.