SPX 60-Minute Chart 200 EMA Cross

One of Keystone's key short-term signals is the 200 EMA cross on the 1-hour chart. Reference the Short-Term Market Signal page for regular updates. The SPX crossed down through the 200 EMA signaling bearish markets for the hours and days ahead. Note the tease in late February that frustrated the short sellers. The SPX fell through the 200 EMA indicating market trouble but the bulls quickly saved the day. Perhaps this time the bears have the upper hand?  The red rising wedge, oversold conditions and negative divergence caused the spank down. The green lines and circles show the prior tests of the 200 EMA and also an inverted head and shoulders pattern. The inverted H&S shows head at 1485, neck line at 1530 so the target is 1575-ish, almost tagged exactly, definitely good enough for government work to satisfy the pattern.

The RSI, MACD line and ROC are weak and bleak wanting to see lower lows after a bounce occurs. These are one-hour candlesticks so this may need from 2 to 4 hours to play out which takes the markets into the afternoon. The histogram and stochastics are agreeable to seeing a bounce occur as the markets move into lunch time. Thus, perhaps a back kiss of the 200 EMA may occur at 1546 as Keystone has a sandwich and a slice of apple pie. Projection is lower numbers moving forward. Watch the 200 EMA like a hawk since if price stays under, the bulls have no hope. 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 3:03 PM: The SPX recovered from the drop at the opening bell and moved above the 200 EMA at 1 PM EST to signal bullish markets for the hours and days ahead.  Watch the 200 EMA, now at 1545.84. The SPX is at 1548.37 so the bulls are happy by a couple of points. Obviously, this remains a fight that can go either way.