Wednesday, May 22, 2013

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

The bears cannot catch a break.  Yesterday is the latest frustration as the 8 MA attempts to drop through the 34 MA but Fed's Bullard says full steam ahead with QE stick-saving the markets (pink box). The pink boxes show the downside teases resulting in save after save. The 8 MA remains above the 34 MA signaling bullishness for the hours ahead. The Fed will not allow a market correction. The red lines show the negative divergence we have been monitoring the last few days. The initial spank down from Monday results in the Bullard save yesterday.  Price then prints another high throwing off further negative divergence which creates the weakness into the closing bell.

The 8 MA is 1671-ish so as long as price stays under 1671, the 8 MA will work lower towards a negative 8/34 cross. SPX S/R is 1675, 1667-1669, 1661, 1649-1650, 1633-1634 and 1626-1627. Projection is sideways to sideways lower but the Fed continues to pump markets higher. 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 9:11 PM:  The 8 MA stabbed down through the 34 MA at 2:30 PM signaling bearish markets for the hours ahead.

1 comment:

  1. Feels like the movie Groundhog Day.


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