SPX 60-Minute Chart Price Versus 200 EMA

Watch this chart, one of Keystone's cyclical signals, very closely during the Tuesday session. Note how price dropped thru the 200 EMA at the open this morning signaling that the bears will lead moving forward but, at 1 PM, the bulls recovered, pushing the price back above the 200 EMA. Bears need price below the 200 EMA while market bulls need price to stay above the 200 EMA.

The pink lines clearly show negative divergence in place that created the spankdown from last Thursday's top.  Note that price did not make a lower low over the last ten days but the indicators printed lower lows (purple circles) which hints that lower prices are needed, at a minimum a test of 1326-ish again.  Watch the lower trend line that targets 1342-ish as a line in the sand.  If price drops under the 200 EMA, the bears will be driving the bus, then, if price loses the lower trend line at 1342-ish, the bears will be in firm control with markets likely moving down towards 1326-ish. If the SPX stays above 1347.53, the bulls will continue to float the markets higher. 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.