Tuesday, December 10, 2013

SPX 30-Minute Chart 8/34 MA Cross Sideways Channel Gap

The 8 MA remains above the 34 MA signaling bullish markets for the hours ahead, however, price is below the 8 MA which would continue to send the 8 MA lower for a potential negative cross with the rising 34 MA. Bears got nothing until they receive the negative 8/34 cross. The pink sideways channel through 1782-1808 continues for over 3 weeks time and price decides to sit directly on the top rail overnight. The two price peaks over the last couple weeks are treated as temporary throw-overs but the sideways channel can also be considered as 1782-1814.

Price moved higher yesterday in the vicinity of the prior highs before rolling over, so the topping action is somewhat cheesy. For a firm negative divergence spank down you want to see a higher price print. The SPX moved sideways in a tight range yesterday, and did squeeze out a new all-time closing high at 1808.37, but the indicators weakened considerably creating the neggie d spank down intraday. The indicators are weak and bleak so lower lows would be anticipated for the few hours ahead. The brown gap at 1805-1806 will need filled. If price falls under yesterday's low at 1806, the SPX will likely print sub 1800 in quick order. Watch the 8/34 cross. 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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