Thursday, March 13, 2014

SPX 30-Minute Chart 8/34 MA Cross Sideways Channels

The 8 MA remains under the 34 MA signaling bearish markets for the hours ahead, however, the bulls are thrusting higher, curling the 8 MA higher, and want to create a positive 8/34 cross today. The 8/34 cross is a key metric to verify market direction today. The red lines show the negative divergence spank down on Tuesday. The green falling wedge helped create a price bottom but the bottom was very weak since the indicators actually prefer lower lows for price. The stochastics provided positive divergence to create the bounce after yesterday's open and the bulls built on that cheesy bottom and now create long and strong indicators that are agreeable to higher price highs.

The sideways blue channel at 1868-1882 is in place for one week and price collapsed through the bottom rail yesterday. However, bulls fight back and back kiss the critical 1868 resistance and spend the night there. This sets up a bounce or die move for price after the opening bell. If price moves up through 1868, 1871 resistance is next which would likely give way to set up a test of 1874 R. The bears want to hold the 1868 resistance and establish a lower sideways channel through 1855-1868 moving forward. Key S/R is 1884, 1882, 1878, 1874, 1871, 1868, 1859, 1853-1855, 1851 and 1848-1849. The 8/34 cross provides the market answer. 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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