Thursday, May 23, 2013

SPX 30-Minute Chart 8 and 34 MA Cross

The 8 MA stabs down through the 34 MA on the 30-minute chart at 2:30 PM EST on 3/22/13 signaling bearish markets for the hours ahead. The bears finally receive a turn at bat. The turn eight days ago resulted in the bulls immediately reversing the 8/34 cross back to the bull side.  The price action shows the higher high occurring, and lower low, as compared to 3/21/13, resulting in an outside reversal day.  Price drops out of the upward-sloping channel.  The red lines show the negative divergence spank down after the new highs printed. The indicators remain weak and bleak. Stochastics are oversold already looking for at least a dead-cat bounce. The RSI is not yet oversold so this hints at some lower numbers ahead.

Note how price bounced directly off the 1649-1650 support so this level has street cred moving forward. SPX S/R is 1687, 1680, 1675, 1667-1669, 1661, 1649-1650, 1633-1634 and 1626-1627. Projection is sideways to sideways lower until positive divergence appears. 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.

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