SPX 30-Minute Chart 8 MA and 34 MA Cross Fibonacci Retracements Key Support and Resistance

The market bulls wrestled back control of the markets since the 8 MA crossed above the 34 MA on the 30-minute chart on Friday at 1:30 PM. The fix was in at that point and the bulls ruled into the close and moving forward. The move reverses the bearish cross that occurred mid-week last week. Keep using the cross as the market directional indicator for the hours and days ahead. For now, the bulls are driving the bus again. The red lines from a week ago show how the negative divergence marked the top and created the spank down from the 1427-ish intraday high print. The green lines show the positive divergence, along with the oversold conditions and green falling wedge that created the launch move on Friday. Note that the RSI and MACD line, however, want to see a retest of the 1398-1399 price area.

The action on Friday shows price inching higher into the close with negative divergence on the RSI and MACD histogram, also the stochastics which are overbot, while the MACD line and ROC want to see a retest of the Friday high.  This morning's futures are setting up this outcome.  When a 1413-1416 print occurs, the negative divergence should be across all indicators so that would lead to downward action again moving forward. The action for the last five hours of trading Friday hints that price will stutter step thru 1409-1416 to start the day today and then likely resolve to the downside.

The Fibonacci retracements are shown for the move from the 1427 top down to the 1398 bottom.  If you think Fib's are folly, the chart shows you how price respected the 38% Fib retracement, using it as support, for hours, and, the spike high intraday tagged the 50% Fib before retreating, obviously the Fib's are to be respected. Price is moving thru the 38%-50% retracement range, 1409-1413. If price jumps up over 1413, keep an eye on the 62% Fib retracement at 1416-ish. Perhaps the buoyant futures will pop price to the 62% Fib at the opening bell.

Key support and resistance levels are shown by the black lines; 1422, 1419, 1413, 1406, 1403 and 1499. Any moves thru these levels are significant. For Monday's trade, the bulls need to push thru 1413.50 and hold it for about ten minutes, and an upside acceleration will occur easily testing 1416 and perhaps moving on to the critical 1419 level.  The bears need to see 1398 to regain mojo. A move thru 1399-1412 is sideways action today. 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.