Wednesday, May 15, 2013

SPX 30-Minute Chart 8 and 34 MA Cross Upward-Sloping Channel Overbot Negative Divergence

The 8 MA remains above the 34 MA signaling bullishness for the hours ahead, however, the red lines clearly show the negative divergence in place and overbot conditions creating the weakness to begin the day and the preferred weakness moving forward.  The ROC is taking on a weak and bleak profile. The 2-hour and 1-hour charts are negatively diverged as well so weakness would be expected moving forward as long as David Tepper does not show up on television.  Markets are currently flat. Price tagged the top rail of the channel so a move to test the lower channel rail and support at 1645 is likely. Support below is 1645, 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.


  1. It looks like AAPL has broken the 435. It's regained the 435 and is holding for the moment. It looks like 420 is the next stop if the 435 fails. Subsequently 400.

    1. There is a gap at 418-ish. Price may want to create an inverted H&S on daily chart so right shoulder would be between 390 and 420 then perhaps a bounce and move higher again. Apple is receiving bad analyst comments and one of the suppliers report lower earnings since the orders from AAPL are decreasing so that is fuel for the downside.


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