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.