Monday, December 23, 2013

SPX 30-Minute Chart 8/34 MA Cross Overbot Rising Wedge Negative Divergence

As far as the 30-minute goes, it is not enthusiastic about price making further highs. The red lines show negative divergence across all indicators.  The overbot conditions and rising wedge patterns are bearish as well. The 2-hour chart (see previous chart) wants to see a touch more upside over the next hour or three but overall the SPX setting up to roll over moving forward. Considering all the joyousness after the Fed pumped the markets with ZIRP Forever last Wednesday, the eggnog may go sour and the Christmas tree may dry out with the needles dropping moving into the holiday mid-week. Projection is for SPX to roll over in the hours ahead. The 1822-1824, 1817-1818 and 1810 support levels are attractive downside targets.

Bears got nothing until they attain a negative 8/34 cross and price would have to drop under the 8 MA at 1824.71 to start curling the 8 MA to the downside. The 8 MA is above the 34 MA signaling bullish markets for the hours ahead. A negative cross would be expected moving forward, perhaps 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.

Note Added 4:18 PM:  The SPX closes at another new all-time high at 1827.99. HOD is a new all-time high at 1829.75. The 8 MA on the 30-minute is 1827.80 so price closed a hair above. Bears cannot get a break. The 8 MA will not curl over to the downside until price moves under the 8 MA and stays under moving lower. Perhaps a move to 1830-1832 tomorrow then roll over to the downside (since the neggie d should remain in place). The 1-hour chart is negatively diverged across the board wanting all down from here. The 2-hour is trying to turn the MACD line negative and that will lock in the overall roll over for the SPX to the downside. Then we see what the bears got.

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