Tuesday, May 14, 2013
SPX 30-Minute Chart 8 and 34 MA Cross
David Tepper of Appaloosa Management plays Santa Claus for the bulls today and sends the broad indexes higher. The brown rectangle shows the sideways action on Monday and today the move above 1636 resistance occurs setting the path higher. The 8 MA remains above the 34 MA signaling bullish markets for the hours ahead but the red lines continue to show negative divergence and a preference for price to move lower. The green lines show the momo over the last day so price will at least want to settle out at the elevated levels to allow time for the indicators to set up with negative divergence over the few-hour time frame. The bulls appear unstoppable. Oddly enough today, copper is collapsing and volatility is jumping higher with the VIX to 13.20. Either the SPX, or the VIX, is wrong. Projection remains for a roll over in price moving forward. SPX support is 1634-1636, 1626, 1618, 1614 and 1597-1598. 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.