SPX 30-Minute Chart 8 MA and 34 MA Cross Sideways Symmetrical Triangle

Traders are lulled into the sleepy sideways vibe this week but the market bears are ninja's yesterday, at 2 PM EST, sneakily and stealthly pushing the 8 MA under the 34 MA to signal bearish markets for the hours and days ahead. The only way the bulls can stop the slide is if the markets bounce strongly at the open causing the 8 MA to curl back up and head higher back up over the 34 MA.  The bears took control a week ago late last Tuesday, then the bulls took over last Friday, then the bears took the reins again yesterday afternoon (red and green circles). Keep watching the 8 MA and 34 MA cross; it tells you the near term market direction.

The sideways symmetrical triangle pattern is in play and price will likely decide the direction today.  The vertical side is about 30 handles so using 1410 as a pivot, this targets either the 1440's on the upside, or 1370's on the downside. The price move out of the triangle is obviously extremely important. With the 8 MA under the 34 MA the move should be lower but, with GDP on tap this morning, the market bulls may reverse the negativity on a happy number.  Price closed at 1409, the 38% Fibonacci retracement shown on a previous chart. The indicators all display the sideways nature of price over the last week. Chairman Bernanke provides the answer for markets on Friday but the triangle wants to decide today.  Sometimes sideways triangles may stretch out further which may occur since the big decision is two more days away.

Note the smaller triangle (thin blue lines) shows price falling thru the lower trend line already and this triangle would project about an 18 handle move to 1391-ish. The 8 and 34 MA cross tells you everything you need to know moving forward. 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.