SPX 30-Minute Chart 8/34 MA Cross Gap Potential Island Reversal

The 8 MA stabs down through the 34 MA on the 30-minute signaling bearish markets for the hours ahead. If bulls want to stop the downside, they must catapult the SPX skyward immediately, say within the next hour or two, otherwise, further weakness will remain, linger and increase. The indicators are a mixed bag, some positive divergence, but the MACD line continues to slope downward. The RSI is not yet oversold either. Remember the 1833-1835 gap discussed last week? Note how price came down to test 1835, and bounced on the first try. Another test should occur for another bounce, or die. The gap needs filled but if price drops to 1835 then collapses in a heartbeat down through the gap to 1833 and lower, this would constitute an island reversal pattern. There is another juicy gap at 1820-1823.

The bears are making some noise but today needs to play out to determine if the bears got game, or, if they fold like a cheap suit. Watch the 8/34 cross. Bulls got nothing unless they create a positive cross. A higher VIX above 14.12 creates market negativity today and now the VIX drops back under on the bull side. Thus, the bulls may be launching an attack to push equities higher and win back the 8/34 cross. The next hour or two is important. For now, the bears are driving the bus, but they desperately need the VIX back above 14.12 pronto. Bulls will stop the market downside if they keep VIX under 14.12. 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 11:38 AM:  VIX 14.12 so it is time to bounce or die and take the markets in the inverse direction. What say you, volatility? SPX taking a look at the 1835 support again, bounce, or die.