Tuesday, January 14, 2014

SPX 30-Minute Chart 8/34 MA Cross

The 8 MA stabs down through the 34 MA on the 30-minute signaling bearish markets for the hours ahead. Bears will try to create a negative 200 EMA cross on the 60-minute chart to verify the negativity (see previous chart). Bulls got nothing until the create a positive 8/34 cross. The RSI and stochastics want to see a bounce in price in this 30-minute time frame but the other indicators remain weak and bleak preferring to see lower lows. The 1-hour and 2-hour charts are similar desiring to see some further weakness. A move higher to back kiss the 1824-1827 level is prudent.

A full moon occurs tomorrow evening at 10 PM EST and markets are typically bullish moving through the full moon. In addition, the Martin Luther King Day holiday is Monday, 1/20/14, and markets are closed. Equities are typically bullish the last couple days moving into a three-day holiday weekend so this foretells bullish seasonality as the week moves along. Therefore, using the minute and hourly charts as a guide and meshing all this together into a prognostication would hint that the SPX would bottom today, or perhaps early tomorrow morning, and then may run higher and finally print some bullish days moving into next week.

Futures are set to pop markets slightly at the opening bell so the thought is that the pop may test 1824-1827, then fade, and consideration would be given to then look for a bottom to play the long side for a quickie trade for a few days time. The current thinking is that a near-term market bottom would print tomorrow. If retail and utilities remain weak, however, and either copper moves lower and/or volatility higher, the bears will keep trucking along to the downside ignoring the seasonality factors. 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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