Thursday, July 11, 2013
SPX 30-Minute Chart 8 and 34 MA Cross
At yesterday's closing bell, the 8 MA was poised to stab down through the 34 MA but Chairman Bernanke reversed this potential negative signal with his statement about 'QE accomodation for the foreseeable future' last evening. The shock waves continue to ripple through global markets. The 8 MA is above the 34 MA signaling bullish markets for the hours ahead. Interestingly, note how the pop in price simply creates negative divergence at the get-go. The two prints thus far today display a tweezer top with the candlesticks and negative divergence across all indicators (blue lines). There is VST momo as would be expected for such a strong bounce this morning (short green lines). So a few candlesticks are required to burn off this upside momo. Considering the overbot conditions and negative divergence setting up this bounce in the indexes may not have staying power. Market bears got nothing unless they send the 8 MA under the 34 MA. 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.