Tuesday, November 19, 2013

SPX 30-Minute Chart 8/34 MA Cross Upward-Sloping Channel Negative Divergence Spank Down

The negative divergence on the SPX hourly and minute charts exerted its influence yesterday afternoon. The red lines show the spank down off the top. Price has been bouncing up and down through the upward-sloping blue channel. Price barely tapped the lower rail yesterday before dip-buyers jump in. The indicators are weak and bleak all wanting to see lower lows in price except for the RSI which allowed the recovery into the closing bell. The RSI is near levels from several days ago when price was far lower. This behavior acts as a weight on price wanting to drag it lower. The stochastics just stab into oversold territory but have plenty of time to play around down there.

The 8 MA is above the 34 MA signaling bullish markets for the hours ahead, however, the 8 MA is moving down heading for a potential negative 8/34 cross in Tuesday morning's trade. Bears got nothing until they create a negative cross. Also of interest is the lower blue channel trend line now at 1788-1791 for today's trading that has held for 2 weeks time. Trouble begins if the lower trend line is lost. 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 11:04 AM:  At 10:30 AM, the 8 MA stabs down through the 34 signaling bearish markets for the hours ahead. Can the bears maintain the negative cross this time or are the bulls only teasing the bears again like Lucy holding the football for Charlie Brown? Watch to see if the negative 8/34 cross maintains, if so, down is the direction. Bulls need to spike equities higher immediately to reverse the negative cross, otherwise, the bears should gain downside momo.

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