Wednesday, September 4, 2013

SPX Daily Chart Sideways Channel 20/50 MA Cross

SPX daily chart is playing out the same fractal from the May-June selloff, so far. The blue lines follow a bear flag type pattern to the bottom then a bounce and price converges on the 20 MA and 50 MA which are crossing. Today would be the first day print of the three candlesticks inside the green oval. So tomorrow may throw off a low intraday print, perhaps with a big up in the TRIN, that would be a buyable bottom that leads to the continued up like July. At least, this is what most traders are looking for moving forward.  Look at that July orgy that followed this juncture at the green oval. Will the fractal continue to repeat and September will be a big upside orgy like early July? Back in May the MACD and histogram were still throwing off a bullish vibe wanting to see higher highs, which occurred in July. Now, however, indicators have topped, and come off overbot levels, with rising wedge behavior and negative divergence, and price does not appear to have the need to come back up like it did in July.

There is a gap left behind at 1680-1685 that will be addressed some day in the future--maybe a couple days or weeks from now, but maybe a couple years from now. The brown sideways channel is through 1427-1669 which are strong S/R numbers. Bulls win above 1669. Bears win below 1627. Watch the pending fight with the 20-day MA now at 1660.69 and dropping. Obviously the way higher is through the 20-day MA.  Bears will be fighting with all their might to punch up through the 20-day MA and then up through the 50-day MA at 1663 to begin an upside orgy like July. If bears hold the line at the 20-day MA, a spank down and price collapse will follow, and the fractal behavior will end, and the bears will create further technical damage. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.