Monday, March 24, 2014

SPX 30-Minute Chart 8/34 MA Cross Horizontal Support and Resistance Levels

The sideways bull-bear fight continues through 1841-1884. The horizontal lines show strong support and resistance at 1884, 1878, 1874, 1868, 1859 (March starting number), 1855, 1848 (start of 2014 number) and 1841. The green lines show the positive divergence, falling wedge and ovesold stochastics and RSI that created the price launch one week ago. The red lines show the negative divergence, rising wedge and overbot stochastics and money flow that created the spank down on Friday continuing today. The indicators remain weak and bleak (red lines sloping lower as indicators print lower lows) so price will likely seek a lower value even after a bounce occurs in this 30-minute candlestick time frame. Stochastics are oversold and will help create an intraday bounce. Thus, the market weakness may linger for at least 3 to 6 candlesticks so that would take things into this afternoon.

The 8 MA is under the 34 MA signaling bearish markets for the hours ahead. Watch to see if it holds since the bulls are always there to slap the bears in the face, just like last week where the SPX reversed the downward slide and ended up printing a new all-time high at 1883.97. If 1859 fails, next support is 1855, then 1848. Bulls need to push up through 1859 and run towards 1868 againThis 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 10:44 AM:  The SPX falls through 1859 and tests the 1855 support resulting in a bounce from the LOD 1854.81. Bulls win above 1859. Bears win under 1855. VIX is up to 15.66 well above the 200-day MA. The 20-day MA is 1862.05 and it would not be surprising to see an intraday bounce to back kiss this level.

Note Added 11:07 AM:  The SPX loses 1855 S so 1848 is next support. Remember the 200 EMA on the 60-minute is 1852.28 and 1848-1852 is the strong support gauntlet highlighted in the S/R missive. In the early going today, bears are pushing. This is a major market decision occurring at 1848-1852. Very bad things will happen to equities sub 1848. Bulls will stay in the game above 1852. The fight continues through 1848-1852.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.