Sunday, December 15, 2013

SPX 60-Minute Chart 200 EMA Cross

The SPX is under the 200 EMA at 1782.65 signaling bearish markets for the hours and days ahead. The blue dots show lower lows and lower highs occurring which is a bearish trend. The green lines show positive divergence that will want to send price higher. The bears are okay as long as they keep the SPX under the 200 EMA. If the bulls come to play and send price up through 1783, the bears will start to fold like a cheap suit and will fortify the 20-day MA at 1793-1795 as strong resistance. The bears will remain in the game under 1796, which is also the top rail one of the downward-sloping channel lines, but above 1796, the bulls will send price higher to 1800 plus again and try to create a positive monthly close for December above 1806.

The RSI is not showing the long and strong gusto that the other indicators are showing over the last few hours so this hints at some sideways ahead. Sideways behavior would be in line with the typical market behavior before a Fed meeting which is Wednesday. Perhaps price plays around at 1772-1796 until Chairman Bernanke brings the tablets down from on high telling the markets which way to trade on Wednesday afternoon. Bulls are happy above 1782. Bears will start to create more serious downside damage under 1772. Key S/R is 1814, 1808, 1803, 1798-1799, 1796, 1791, 1788, 1782, 1775 and 1772. 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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