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

As always for the 30-minute, the 8/34 MA cross is the most important element and currently the 8 MA is under the 34 MA signaling bearish markets for the hours ahead. However, the afternoon surge yesterday and today's higher start will continue sending the 8 MA higher for a potential positive cross to place the bulls back in control. The 8 MA is 1691 so as long as price stays above 1691, the bulls are in good shape, below 1691 and the bears are in good shape. The bottom occurred shortly after yesterday's opening bell due to the Fed's POMO pumps. The action the last two days clearly show the Fed pumping at 10-11 AM which sends equities higher. The Fed, and other central bankers, are the markets. The evidence is plain to see in the chart above as well as other areas such as commodities weak for months but it does not matter to the stock market since the Fed's self-imposed mandate is to pump equities higher at all costs.

The dark blue bear flag pattern plays out. Using the 1710 top a 1683 target was on tap. The 1685 print yesterday is good enough for government work since the top was a spurt to 1710. If using 1707-ish as the top, the target for the bear flag is 1686, achieved. Many times a bull or bear flag will morph into a larger bull or bear flag pattern. Note the lighter blue lines that show a potentially larger bear flag with the first leg from 1710 to yesterdays low at 1685, a difference of 25 handles. Thus, if today's consolidation flag occurs as shown with, say, a roll over at 1695-ish, that would target about 1670, that critical support area at 1670-1672. So watch to see if the consolidation flag plays out today and results in price collapse, or not.

The brown lines show a potential H&S pattern developing with head at 1710 and neck line at 1682. This would target 1654 if the 1682 fails. The thin brown lines show an alternate H&S with head at 1710, neck at 1685, which would target 1660 if the 1685 fails. The bears are fine as long as the 8/34 cross remains negative as is. If the 8 MA moves above the 34 MA today, the bulls will regain market control and the bears got nothing. 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.