SPX 60-Minute Chart 200 EMA Cross Oversold Falling Wedge Positive Divergence
SPX 60-minute chart shows the price failure through the critical 200 EMA at 1556.04 signaling bearish markets for the hours and days ahead (this is one of the Short-Term Signals regularly updated). The price failure through the 200 EMA is very important, and very bearish. Price came up for a weak back kiss; a more substantive back test is likely required. The indicators are positively diverged wanting to see a bounce, sans the MACD line that would like to see another matching or lower low after a bounce move occurs. The chart indicates that price should bottom in the hourly time frame and recover for a few hours, perhaps to venture higher for another look at the 200 EMA. Thus, today may be a flat to up day. This April week of OpEx is typically a very bullish weak so this seasonality may aid the bulls today.
The broad indexes will sell off and remain weak as long as price stays under the 200 EMA. Markets will strongly recover to the upside if the SPX moves back above the 200 EMA. Use the 200 EMA cross as an important guide moving forward. 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 4:10 PM: Today was a photo finish. In the final minutes the SPX came up to the 200 EMA at 1555.69, even poking through for a second, but closed under at 1555.25 signaling bearish markets for the hours and days ahead, albeit by only 44 pennies leeway. The drama will continue on Monday so place 1555.69 on the top of your watch list.
nice chart! I played the bounce with a long position from y'day ~1540 to today ~1550. Quick scalp, kinda keeping the skills sharp. Out now. Short again??? An up move that stalls in the 1555 area is very suspect IMHO....
ReplyDeleteYep, the 1555-1556 may serve as a ceiling. The 200 EMA will tell a lot. If price moves up, which it has today, and back tests successfully, collapsing after the touch, the markets could gather strong steam to the downside. The bulls need to punch up through 1556 and they will pour some booze into the punch bowl and slap each other on the backs, with laughs all around. So the 1555-1556 level is very important today.
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