Saturday, February 2, 2013
SPX 60-Minute Chart 200 EMA Channel Rising Wedge Overbot Negative Divergence
One of Keystone's shorter-term signals is the 200 EMA cross on the 60-minute chart. The red and green circles show the last action along the 200 EMA and the move to announce bullish markets ahead occurred as the year began. The SPX has been well above the 200 EMA ever since. The bulls rush in to buy any tiny pull back but as price rises, the negative divergence remains in place, and overbot stochastics, signaling another spank down on tap. The long black rising wedge is squeezing in to push price out the bottom side. The 1498 support is key. The current print at 1413-1414 may serve as a head of an H&S pattern moving forward. The market bears will not be happy until the SPX moves under the 200 EMA. 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.