SPX 30-Minute Chart

The 8 MA and 34 MA steer the near-term ship and the wavy rocky seas continue. Overnight, encouraging news about a Spain bailout nearing resolution bounces the futures markets. The euro is up over 1.30. The 8 is under the 34 so the bears are in charge for the hours and days ahead, but, if the open is a strong upward thrust, the 8 MA may pierce up thru the 34 MA this morning placing the bulls back in charge as the bull-bear tug-o-war continues. The 8/34 cross has occurred three times since Monday afternoon.

The price action over the last eight days creates a strong upper and lower trend and sideways triangle vibe moving forward. Thus, the price action that breaks out of the trend line, either way, will be important.  The black dots show the pattern of lower lows and lower highs since last Friday morning creating a downward channel. Today is important since if price moves above the 1464-1465 level, a higher high will occur, nullifying the bearish downward channel pattern and placing the bulls in a better position. The neon green lines for the indicators show a long and strong profile so price wants to make a higher high again and the futures are pointing that way.  The money flow is less enthusiastic and would be happier seeing price move lower. If 1465 is tested today, check the indicators to see if they remain long and strong, as compared to the prior peak a day ago, or if the indicators do not have the gas to overtake the prior levels. The weak money flow will have to really fly higher to move back up and over the 80 level. Thus, price has a sideways feel to it. Markets are likely idling until they hear the outcome for Spain's bailout.

Considering the buoyant futures, SPX is headed for the 1465 test at the open, perhaps some back testing of that upper trend line at 1462 will occur, then a move thru 1460-1465. Positive news from Spain will continue to push price higher. If the SPX moves up over 1465 to place the higher high, this is very bull favorable and points the way higher. 1468 is very strong resistance above. 1446 is strong support below. As always the 8 and 34 MA cross is the most important thing to watch on this chart. 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.