Wednesday, April 23, 2014

SPX 30-Minute Chart 8/34 MA Cross

The 8 MA remains above the 34 MA on the 30-minute signaling bullish markets ahead. However, the bears are driving the 8 MA downwards and are trying to stab through the rising 34 MA in the candlesticks ahead, perhaps on either side of lunch time. Bears got nothing unless they achieve the negative 8/34 cross.

The red lines show the negative divergence spank down off the top. RSI and stochastics were also overbot. Note the gap fill needed at the 1872 support. The indicators are weak and bleak and the RSI and stochastics are crossing down through the 50% level into bear territory so lower lows would be anticipated for a few candlesticks forward. Key SPX S/R is 1897, 1891, 1884, 1882, 1878, 1874, 1872, 1868, 1859, 1848, 1841, 1831, 1828, 1816, 1808, 1803 and 1800. 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 12:41 PM:  The bears push lower today and the 8 MA and 34 MA are converging only separated by two points or less now. The bulls are not making it easy, however, and the bulls keep the SPX flat and try to push it higher to prevent the negative 8/34 cross from occurring. The 8 MA is 1877.69 and dropping so as long as price stays under this level the 8 MA will continue lower to create the negative cross. If bulls can push price above 1877.69 and higher they will succeed in maintaining the 8 above the 34 forecasting continued bullishness in markets. The SPX is at 1877.65 so the pivot from here is key. The 1878 is also strong overhead resistance so bulls win above 1878 and bears win below 1878.

Note Added 12:45 PM: The bulls push the SPX to 1878.08 but whoops...... now at 1877.86. The fight at 1878 continues. The bears have an opportunity here but must push the SPX lower right now without delay. Each minute that goes by with the SPX at 1878 and higher means the bears are going to fold like a cheap suit and the bulls will ride on to victory.

Note Added 1:32 PM: SPX 1878.01; the beat goes on. Dollar/yen 102.33. These are the two pivot points. Both will move up, or down, together. RTH 58.97 is a key bull-bear level identified by Keybot the Quant algorithm. RTH is 58.88 on the bear side causing market negativity and placing a lid on the market upside. Bulls must go through RTH 58.97 to paint the picture to SPX 1900. Lots of drama is occurring with the 8/34 cross that remains bullish. The 8 MA is 1877.55. The 34 MA is 1876.26. Now only about a buck or so away from each other. The SPX is printing 1877.66. Bears must quit fooling around and push price lower if they want to take control of markets, otherwise, the bulls will begin to party into the closing bell. TRIN is 1.04 moving lower towards the neutral 1.00 level but has been 1.3-1.4 for much of the day representing orderly non-panic selling in equities.

Note Added 1:47 PM: BPSPX remains on a market sell signal but bulls are pushing price up to 68.80 now only 1.20 away from the 70% level that will create a market buy signal. Equities will have to make a commitment one way or the other this week as signals and parameters set up at inflection points. The lollapalooza of earnings releases will set the market tone. AAPL after the bell in only about two hours time carries a lot of clout and will either create market happiness, or sadness.

Note Added 2:32 PM: The 8 MA is 1876.83. The 34 MA is 1876.78. Five pennies difference.

Note Added 2:37 PM: The 8 MA is 1876.79. The 34 MA is 1876.77. Two pennies difference.

Note Added 2:42 PM: This is comical with the bears so close to a negative 8/34 cross they can taste it, but they cannot cross the finish line. Like a bunch of drunks laying down in a tug-o-war contest, exhausted, neither side able to pull their way to victory.

Note Added 2:44 PM: Bingo; it took the bears all day but they stagger across the goal line. The 8 MA is 1876.75. The 34 MA is 1876.76. The bears create a negative 8/34 cross which signals bearish markets for the hours ahead. See if the bears can hold the negativity through the closing bell to lock-in the bearishness moving forward.

Note Added 8:50 AM on 4/25/14: The Thursday session occurs, yesterday, and the joyousness in AAPL and FB created a happy market day albeit only for the opening minutes. Equities move flat yesterday and note the drama on the 30-minute with the 8/34 cross. It is a knock-down, drag-out, bull-bear fight to the finish with neither side willing to back down with the 8 and 34 MA dancing a sideways dance trading punches. Directly before the Friday opening bell the SPX begins at 1878.61 with the 8 MA at 1879.02 and 34 MA at 1879.05. How do you like that? The bears are holding on by a hair on their chinny chinny chin chin with a negative 8/34 cross by only three pennies predicting bearish markets for the hours ahead. Obviously, you have to wait to see separation so the winner of the 8/34 cross fight is clearly identified and the market direction forward confirmed.

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