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

SPX 30-minute chart shows the sideways symmetrical triangle we were watching a week ago.  The resolution was a breakout to the upside last Thursday morning. The vertical side of the triangle is about 13 or 14 points, thus, with the break-out at 1405, this targets 1418 or 1419, so the sideways triangle pattern is satisfied. The red rising wedge, overbot conditions and negative divergence created the spank down to begin yesterday.  The thought would be that the roll over was at hand but the Energizer Bunny reversed and price moves higher again.

The most important aspect of this chart is the 8 and 34 MA cross, bulls win if the 8 is above the 34, bears win if the 8 is below.  We watched the sideways drama from 8/8 thru 8/15, with the bulls and bears fighting it out.  The apex of the triangle pattern on Thursday morning, with the pink box, shows the tease where the 8 MA was about to stab down thru the 34 MA but the pattern instead resolved to the upside, saving the bulls and driving price higher.  Yesterday, note the breakdown occurring at the lows, the small pink box, the bears had it in their grasp, but the 8 MA once again moved higher refusing to pierce the 34 MA so the bulls continue driving the bus.

Price is near the Friday high, and the futures indicate a higher open today, so watch to see how the thin red lines react for the indicators, which are all now sloping negatively. The move over hte last four candles, however, which would be the final two hours of trading yesterday, show short term momo, and that appears to be carrying over into today. This hints of more sideways stutter step stuff before a roll over. The markets are reacting to Europe and central bank news, thus, if there is happy talk about Greece, or a Spain bailout or other ECB measures, the markets are going to jump, like yesterday and this morning.  If a negative tape bomb hits, which has not been the case of late, price can receive a slap down in a heart beat.

SPX S/R is 1424, 1422.38, 1419.04, 1417, 1415.32, 1413, 1410, 1406, 1403, 1399, 1394 and 1391. Jackson Hole, where Bernanke will provide answers, is Friday, 8/31/12, so the markets may be trying to limp sideways all the way to the decision, now about eight trading days away. Projection is sideways to sideways down moving forward. Watch the 8 MA and 34 MA cross which tells you who is driving the bus for the hours and days ahead. Currently, the bulls remain 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.