SPX 60-Minute Chart with 200 EMA Cross Signals Bearish Markets Ahead

Do you think the 200 EMA on the 60-minute chart matters? The chart clearly shows the respect that price has for this important exponential moving average.  An EMA simply places more emphasis on the price action in the time periods nearer the current price rather than equally spaced emphasis throughout the price range as a simple moving average (MA) does.  This provides a faster signal but will also be prone to whipsaws or erroneous signals.

The 200 EMA tool, however, has a great track record of reliability. That is why the action late last week is a significant market development.  Price came down in the vicinity of the 200 EMA early Tuesday morning and bounced, but then on Wednesday sliced down thru like a hot knife thru butter.  Price then came back up for the back kiss to determine if it really wanted to head lower, or, if it wants to recover.  Price back tested, and collapsed.

As described in the SPX S/R missive posted earlier, 1433 is very strong and key S/R. Bulls receive a bounce in their step above 1433; bears below 1433. As long as price stays under the 200 EMA which is now at 1440, the bears rule the markets. Keystone's SPX 600-Minute Chart with 200 EMA Indicator is continuously updated on the Turn Signal page on this site. You can review the history of the 200 EMA over the last couple years on that page. 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.