SPX 30-Minute Chart

The 8 MA is under the 34 MA which is bearish.  Along with watching the retail sector and the SPX:VIX ratio at the open to gauge the strength of a rally, watch the 8 and 34 MA cross as well.  The red line shows lower price moving into yesterday's open, with positive divergence (green lines) creating the bounce in the markets.  Note that the MACD histogram was not excited to see a pop in the markets.

The indicators over yesterday's trading time all show higher lows in place but positive divergence cannot be called out since the price did not move under 1337 to print a lower low. Therefore, the markets may have more of a sideways vibe for today. The gap at 1353-ish is easier to see on this chart. Key levels are 1355, 1353, 1347 and 1337. Interesingly, futures have collapsed as this commentary is written. A break of 1337 is serious business for the markets since it sets in play much lower numbers moving forward. If the sub 1337 numbers print, this would create positive divergence if the indicators remain with their current profile so some buouyancy would occur over the 30 minute candle time frames today.  The 8 and 34 MA is the important thing to monitor with this chart today. Price moving above the 8 MA is the first sign that bulls are staging a comeback, then look to see if the 8 MA starts to curl up which would further indicate that the bulls want to run higher. The 8 MA crossing above the 34 MA causes bulls to throw confetti since they will make an upside run. Otherwise, with the 8 under the 34, the bears are in control.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.