Monday, March 10, 2014

SPX 60-Minute Chart 200 EMA Cross Upward-Sloping Channel Expansion Pattern Tight Bands to Squeeze Out Big Move

The SPX remains above the 200 EMA on the 60-minute at 1838.24 signaling bullish markets for the hours and days ahead. The brown lines show an ongoing expansion, or megaphone, pattern in play with price printing and coming off the top rail over the last couple days. The upward-sloping channel remains in play (thin blue lines) with price in the center of the range. The upside trend lines allow a move to 1882-1890 and still maintain the expansion pattern. A move down would target under 1820 if the expansion pattern plays out over the weeks ahead.

The tight standard deviation bands are about to squeeze a big move out, either up or down. The tight bands do not forecast direction only that a huge move is coming in this hourly time frame; about 10 to 30 SPX handles. So either the bulls will be happy in a couple days heading towards or above 1900, or, the bears will be happy with a fight occurring at the strong 1848-1851 support. Key S/R is 1884, 1878, 1874, 1870-1871, 1868, 1859, 1848-1851, 1841, 1828, 1808, 1803, 1800, 1796 and 1791.

The spank down from the top trend lines about one day ago was caused by the negative divergence (red lines) and overbot conditions. The chart favors the bears but the bulls always seem to come up with a positive news event that creates a rally. Bears cannot create market damage until the 1848 support fails and price moves under the 200 MA currently at 1838. Projection is for sideways to sideways lower prices moving forward. Today or tomorrow morning will likely be quite dramatic since the band squeeze will be showing its preference. 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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