SPX 30-Minute Chart 8/34 MA Cross H&S

The bears finally receive the 8/34 negative cross today signaling bearish markets for the hours and days ahead. The 30-minute receives four negative divergence spank downs over the last five days and the last one was the charm for the bears creating the cross. Price dropped to 1682-1685 today to satisfy the H&S pattern shown on the 10-minute chart this morning. This chart would turn into more chicken scratch if that was shown so reference that chart.  The brown lines now show another H&S pattern with head at 1698-ish, neckline at 1684, which targets the 1670-1672 landing zone if 1684 fails. The green falling wedge helped price to recover Wednesday afternoon. The basing pattern at 1684 is cheesy with only the stochastics reaching oversold territory. Nonetheless, price may want to move higher to create a more substantive right shoulder for the H&S.

The purple boxes show how the bears were frustrated over the last week, teased with a negative 8/34 cross only to see a spike in price send the 8 MA higher once again. Perhaps it will be the bears turn to frustrate the bulls with teases from the bottom side of the 34 MA. The SPX is a hair above the 8 MA so this will cause the 8 to curl upwards. Note the behavior on 7/17/13 last Wednesday, same set up as now, where the bulls came in with a huge opening bell spike that ram-rodded the 8 straight back up through the 34 MA to signal bull times ahead spoiling the bear's fun. This makes tomorrow's behavior after the opening bell very important.

The bear's are driving this bus now. The projection would be a move higher by a few handles followed by another roll over and failure of the 1684 support targeting a move to 1670-1672. Of course if the bulls come loaded for bear tomorrow and blast off higher after the opening bell reversing the 8/34 negative cross, then SPX 1700 would be back on the table. Copper is key. If JJC stays under 39.21 it is very likely that the top is in for the SPX. Watch copper overnight since the broad markets will move in the direction of copper tomorrow independent on how equities may initially move at the opening bell. 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.