SPX 30-Minute Chart 8 MA and 34 MA Cross

Watch the 8 MA and 34 MA potential upside cross today to gauge if the market recovery move has legs, or not (the S&P futures point to a higher open). If the 8 moves above the 34 the rally has legs for a few hours and days ahead. Currently, the 8 is under the 34 so the bears rule for the hours and days ahead. The green lines show positive divergence over the last two days that will help create this mornings bounce. Over the last few hours, however, the red lines show that some further weakness in price is desired.  The RSI and ROC show the sideways nature of price movement currently.  SPX 1409, 1413, and 1419 are strong resistance levels above.  A lot can happen but look for a price move to the 1413-1419 area and if the 8 MA is not above the 34 MA the move will fade and price will drop. If the 8 MA moves above the 34 MA, the SPX will likely move up thru 1419 to 1424 and perhaps 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.

Note Added 10/26/12 at 6:00 AM:  The 8 MA finished the Thursday session remaining under the 34 MA so the bears rule.  Considering the AMZN and AAPL earnings disappontments last evening, it appears the 8 will likely stay under the 34 which forecasts bearishness for the hours and days ahead.  The GDP and Consumer Sentiment economic data is important this morning.