Sunday, June 16, 2013

SPX 30-Minute Chart 8 MA and 34 MA Cross Sideways Symmetrical Triangle

The 8 MA is above the 34 MA signaling bullish markets for the hours ahead, however, the 8 MA is dropping for a potential negative 8/34 cross on Monday morning. The 200 EMA cross on the 60-minute chart is bearish and the 8/34 cross above is bullish so these two signals have to align to point the proper way forward. Either the negative 8/34 cross occurs tomorrow, or, the SPX will move above the 200 EMA at 1629 to verify the bull path. Note the multiple 8 and 34 MA crosses over the last month; 8 with potentially the 9th tomorrow in 17 trading days. This is a signal change every other day which is far removed from expected behavior. The 8/34 cross should result in 3 or 4 days of movement in that direction. This shows how the bulls and bears are fighting for control with no clear winner as yet, but this week will likely tell the tale.

Also of interest is the respect that price has for the 200 MA (thin black circles). The 200 MA is 1636 which corresponds to the strong support/resistance at 1636 so treat this level as very important. The blue triangle shows the same pattern as on the 60-minute chart previously posted with the potential fake-out upside move (brown circle). The brown triangle is also in play which would extend the market up or down decision until Wednesday or Thursday. On this chart, 1618-1629 is key and a move out of this range identifies the winner moving forward but 1618-1636 must also be considered. Bulls should have smooth sailing to the upside above 1636. Bears are in clover under 1618.  Watch to see if the 8/34 negative cross occurs tomorrow, if so, the bears are going to create selling pressure into the FOMC meeting. 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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