Thursday, December 20, 2012

SPX 30-Minute Chart with 8 MA and 34 MA Cross

The negative divergence one week ago created the spank down and the 8 MA fell thru the 34 MA to signal bearishness ahead. But, as last week played out into Friday, price and the indicators formed positive divergence to launch price on Monday morning causing the 8 MA to pierce up thru the 34 MA signaling bullishness for the hours and days ahead.  A two-day upside orgy followed with the SPX leaping to the strong 1446 resistance.  A top was formed with the negative divergence and the spank down started yesterday.

The 8 MA is now curled over to the downside and converging on the 34 MA. Watch this closely after the opening bell to see if the bears jump back into the driver's seat if the 8 MA stabs down thru the 34 MA, or not. The red lines for the indicators at the right margin all show a weak and bleak profile so even after a bounce, the indicators want to see lower lows in price. The strongest S/R levels are 1446, 1441, 1435, 1433, 1429 and 1419. If price heads lower look for either a downward-sloping channel or falling wedge vibe to develop. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.