Sunday, June 2, 2013

Keystone's SPX 60-Minute Chart 200 EMA Indicator

The 200 EMA on the 1-hour chart distinguishes between short term bull market moves and short term bear market moves. If price is above the 200 EMA, as it has been for the last few months, the wine is flowing like water for the bulls. The bears were pushing in April but folded like a cheap suit as price catapulted back above the 200 EMA.  On Friday, price plummets down to the 200 EMA at 1630.15 closing at 1630.74, the bell saving the day since only 59 more pennies were needed to signal bearish markets for the hours ahead. The indicators are setting up with positive divergence to help bounce price but with such downside momo, the morning will have to play out to allow the action to settle. The RSI can easily collapse into oversold territory from here.

The bears need the 1630.15 to fail since bad things will happen to equities under this level. Obviously, the bulls will try to keep the SPX above the 200 EMA to signal bullish markets for the hours ahead. Watch this cross closely tomorrow morning and this week as a key tool for market direction. 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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