Thursday, November 28, 2013

SPX 30-Minute Chart 8/34 MA Cross Sideways Channel H&S

The markets are on idle during the holiday week, the machines nudging price from 1803 up to 1808, then back down to 1803, and so on, through the sideways brown channel. Moving forward, bulls win above 1808-1809. Bears win below 1802-1803. The 8 MA is below the 34 MA signaling bearish markets for the hours ahead. Say what?!! The pink circles show recent teases to the bear cross but the bulls are always there to slap the bears. Even when the negative cross occurs, like one week ago, the bulls commence slapping once again within a day or two, creating a positive 8/34 cross to eliminate any idea of market downside. Is it finally time for the bears to shine? Well, the bears are not yet popping champagne corks since after all, the negative cross is only in favor of the bears by two measly pennies (1805.63 vs. 1805.65) and the indexes are printing new all-time highs. The neon green H&S is in play as long as the current right shoulder at 1807 does not move above the head. A head at 1808 and neckline at 1802 targets 1796, key horizontal support, if the 1802 fails.

The red rising wedges, overbot conditions and negative divergence create the two spank downs off the tops but the bears cannot gain any traction. The yen is weakening and the dollar/yen moves above 102, hanging around 102.15-ish all day long, so equities remain elevated. The central bankers are relentless at keeping the stock markets pumped; if it is not the Fed, it's the BOJ, or ECB, or others. ECB will likely begin a new LTRO program in the coming weeks. Nonetheless, despite the central bankers pumping the easy money crack cocaine into traders veins, the bears score a tiny victory with the negative 8/34 cross. Keep an eye on it since it will tell you market direction forward. Key support below is 1803, 1802, 1799, 1798, 1797, 1796, 1791, 1788, 1782 and 1772. If price moves above 1808 watch the thin red lines for the indicators since negative divergence remains as long as the prints do not move above the thin red lines. Well bears, is this the time Charlie Brown kicks the winning field goal or does Lucy pull the football away once again? 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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