Thursday, March 20, 2014

SPX 30-Minute Chart 8/34 MA Cross

The broad indexes stumble out of the gate today staggering lower, then recover staggering higher. The 8 MA is under the 34 MA signaling bearish markets for the hours ahead, however, the SPX is printing above the 8 MA which will cause the 8 MA to curl upwards for a potential positive cross. Bulls need a positive 8/34 cross or they got nothing. Bears need to push the SPX under 1865 as soon as possible to keep the 8 MA moving lower. Use the 8/34 cross and the VIX chart, a few articles back, to determine direction today. VIX is teasing the 200-day MA at 14.70 so watch to see who wins that battle.

The negative divergence created the spank down (red lines) and the thin blue lines for the indicators show that a sideways stumble may occur moving forward. Watch to see which side of 50% the RSI and stochastics move since that will verify direction. The 1874 is very strong resistance and it held to make bears happy. The 1848 is very strong support and the price level where 2014 began at 1848.36. The month of March began at 1859.45. The SPX may favor a move sideways through 1848-1874 going forward. The exit from this channel will be important with bulls winning big above 1874 and bears winning big under 1848. Watch the 8/34 cross to identify the winner. 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 3/20/14: The SPX is 1864.89. The 8 MA on the 30-minute is 1864.69. Bulls need to move higher from this pivot to curl the 8 MA upwards. Bears need to move lower to keep the 8 MA dropping. VIX is 15.05 above both the 200-day MA at 14.71 and Keybot the Quant's number at 14.30 making for happy bears. Bulls got nothing unless they can at least push the VIX under 14.71. Doctor Copper is in sick bay again puking -2%.

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