Wednesday, April 16, 2014

SPX 60-Minute Chart 200 EMA Cross

The SPX remains under the 200 EMA on the 60-minute at 1854.00 signaling bearish markets for the hours and days ahead. S&P futures are +9 projecting a strong open which will attack this key level. Bulls got nothing unless they punch up through the 200 EMA at 1854 and if so, will chart a path up to the all-time highs. The red lines show the negative divergence spank down highlighted a few days ago and textbook tweezer top (red circle). The green falling wedge, oversold conditions and positive divergence create the bounce off the bottom. Note how the MACD line and money flow are not happy with price moving higher but other market forces and the positive RSI, stochastics and histogram push price higher anyway.

Price prints a higher high during yesterday's session and that comes with all indicators long and strong so more highs are anticipated. There is no sign of negative divergence so at least one to four or more candlesticks may be needed to create neggie d. This would take markets into this afternoon and tomorrow morning. Since seasonality and OpEx factors favor bulls to end the holiday-shortened week the bulls may have an easy time to keep markets elevated into the Easter weekend. Markets are typically bullish the two days leading into a three-day holiday weekend.

The year began at 1848. The 200 EMA is 1854. The 50-day MA is 1846.75 and rising. The 20-day MA is 1858.79 and falling. The big picture S/R is 1897, 1891, 1884, 1878, 1874, 1868, 1859, 1848, 1841, 1828, 1808, 1803, 1800 and 1796. Price favored a sideways channel at 1816-1834 for the last three days with price breaking up and out of this channel yesterday. As price elevates today watch S/R at 1841, 1847-1848, 1854 and 1859. The bulls will be popping champagne corks if they move above 1854. A move through 1841-1854, or even 1841-1859 today and tomorrow into the holiday weekend will place the markets on hold until next week where the firm commitment on direction would be decided. 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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