Tuesday, November 26, 2013

SPX 30-Minute chart 8/34 MA Cross Overbot Negative Divergence H&S

The bulls will not allow the bears to shine. There were many parameters in the bears favor today but equities floated higher. Note the pink circle. Around lunch time it was nearly a done deal. The 8 MA was about to stab down through the 34 MA signaling bearish markets ahead, but, instead, the bulls ramrodded price vertically to immediately curl the 8 MA skyward like an airplane about to crash but averts catastrophe by pulling up at the last minute. Thus, the bears receive another slap in the face and more daily torment by the bulls. The bulls continue with the positive 8/34 cross into the closing bell signaling bullish markets for the hours ahead, but, note the large price drop in the final minutes curling the 8 MA downward again. Bears got nothing until they receive a negative 8/34 cross.

The negative divergence on the hourly and minute charts has been highlighted here over the last couple days. Late-session yesterday the spank down occurs due to the red rising wedge, overbot conditions and negative divergence. Price held the 1802-ish level after the spank down and recovered today moving up into another rising wedge (highlighted on the previous 5-minute chart). The maroon lines show universal negative divergence remaining in place, and, along with the rising wedge, created the spank down to end today's session. The RSI is now printing a lower low and under the 50% level into bear territory. The blue lines show an H&S pattern now in play that will need a right shoulder but in general, the price action would be a head, or top, at 1808.50, a neckline, or sideways channel baseline at 1802, is 6.5 difference so the downside target for price is 1795.50 if the 1802 level fails.

The chart is indicative of a chart that is rolling over so lower lows and lower highs would be anticipated moving forward. Bulls will remain happy until the negative 8/34 cross occurs, which may happen tomorrow. 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.

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