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

The bears were all bluster again today, like yesterday, pushing under 1685 but not providing follow-through. The Fed and BOJ have their thumb on the scale in favor of the bulls and that edge sends markets higher today. The BOJ weakens the yen sending dollar/yen above 98 pumping global equity markets and then at noon time Fed's Lockhart fires the Fed's money bazooka saying the September taper is not cast in stone. Traders pump markets higher since they now dream of more easy money crack cocaine flowing through their veins. The 8 MA crosses up through the 34 MA signaling bullish markets for the hours and days ahead. The bears need to push the SPX sharply lower into the closing bell to negate the positive 8/34 cross.

The blue lines show a potential falling wedge pattern where price just broke up through the upper trend line, which is bullish. The brown lines continue to show the H&S pattern in play with neck line at 1685 that refuses to break. The brown H&S now has two right shoulders which will make it a Quasimodo Head and Shoulders (hunchback of Notre Dame). The green rising wedge points to price testing the important 1699-1700 level again. Note the fractal behavior on 8/8/13, three days ago, where the bulls took control with the 8/34 positive cross but the bears only allowed the move for one day and reversed the cross to the downside again on 8/9/13. That fractal behavior may repeat, or not. Markets remain indecisive but the bulls are driving the bus for now. 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.