Tuesday, August 27, 2013

SPX 30-Minute Chart 8/34 MA Cross

The 8 MA is above the 34 MA on the 30-minute chart signaling bullish markets for the hours ahead, however, the S&P futures are now hitting the lows at -17 which will easily cause the 8 MA to stab down through the 34 signaling bearish markets ahead. The red rising wedge top yesterday was not completely convincing from the standpoint of the MACD line and money flow but there is no doubt the indicators are all now in a weak and bleak move lower. Even after price would bounce, the indicators likely want to see a second step down on this 30-minute candlestick basis. Note the support levels at 1645, 1643 and 1640. A 17-point drop on the SPX would place price exactly at the 1640 support for a major decision. The exact price low on 8/21/13 was 1639.43 so write this number down and watch it like a hawk since markets will either bounce, or die.

 August started at 1686 so this must be kept in mind with 4 trading days remaining in the month. The 1680-1685 gap is big enough to drive a truck through. The dip-buyers may rush in this morning to buy the drop. Markets tend to be bullish on Thursday and Friday ahead of the Labor Day 3-day holiday weekend. With the weak and bleak indicators, this hints that a price bottom may not occur for 2 to 5 candlesticks so that would be 1 to 2-1/2 hours time, at 10:30 AM-Noon, in the Fed POMO window. Watch the 8/34 cross. As long as the 8 MA is under the 34 MA the bears will be in charge moving forward. 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 10:50 AM:  The 8 MA stabs down through the 34 MA today signaling bearish markets for the hours and days ahead.
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2 comments:

  1. dcatlowpjAugust 27, 2013 at 10:51 AM

    Great read here. I saw the same 21st low and marked it with an Alert. Fib retracement, short setup, was stabbed at yesterday, held and the target is way down at 1625. -23.6% target is the calculation. Market breaks this short at 1676.97. Price action is stalling here at 10:50a EST. 15 Min chart looks negative and short to me. Market internals are all neg, with SPX at -436 decliners out of 500 issues. This is a pretty good bear move today.

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    1. Keystone SpeculatorAugust 27, 2013 at 11:02 AM

      The dip-buyers will come in since traders remain complacent. Markets will sell off strongly as the CPC and CPCE put/calls spike higher. A little bounce may be needed, then another reversal, to keep discouraging dip-buyers and start to breed fear.

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