SPX 30-Minute Chart 8 MA and 34 MA Cross

Price fell through the upward-sloping blue channel on Monday. The purple rising wedge, overbot conditions and negative divergence creates the two spank downs off the top (purple arrows). Price has not fallen below the lows from five hours ago so positive divergence cannot exist as yet.  The short red lines for RSI, MACD and money flow show a weak and bleak profile, like the 2-hour chart, which should act as a weight on price, pulling it lower. The thin brown lines show a potential H&S with head at 1698 and neck line at 1685 which targets the important 1672 support. If that would be achieved by bears, another potential H&S pattern would be the 1672 as a neck line (as shown on the 2-hour chart) which targets 1646-ish if 1672 fails.  The 1685 and 1672 levels can be viewed as bounce or die points moving forward. The RSI, stochastics and money flow all slip into negative territory under their respective 50% levels.

The 8 and 34 MA cross is the most important item on the 30-minute chart. The bears are simply not allowed to have their day in the sun.  The negative cross occurs Tuesday one week ago but that was short-lived due to Chairman Bernanke promising free money forever during the Congressional testimony. The happy talk stick-saves the markets once again last Wednesday creating a positive 8/34 cross and the markets are up ever since.  The pink  boxes show the frustration of bears. Each time the 8 MA is about to stab down through the 34 MA, the Fed injects juice to send the SPX price higher and prevent the negative cross from occurring. The Fed's central mandate is to keep the stock market elevated. Yesterday was no different with the afternoon juice preventing the cross.

At the close, price is under both the 8 and 34 MA's indicating that a negative cross should be on tap this morning, but, the bulls can prevent the cross by sending equities higher at the opening bell. Alas, the S&P's are +5 at this writing about two and one-half hours in front of the opening bell so it appears that another pink square will likely identify more bear frustration today.  The chart is weak and a negative 8/34 cross is anticipated but Bernanke's money bazooka is powerful and the 8 remains above the 34 MA signaling bullish markets ahead. Projection is sideways to sideways lower moving forward. Market bears got nothing unless the negative 8/34 cross occurs. 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 10:36 AM:  A few minutes ago the 8 MA stabs down through the 34 MA signaling bearish markets for the hours and days ahead. Watch to see if it holds all day.