Monday, May 12, 2014

SPX 30-Minute Chart 8/34 MA Cross

The 8 MA is above the 34 MA signaling bullish markets for the hours ahead. The bears are folding like a cheap suit. The SPX is printing above the all-time closing high at 1890.90 so a print at these levels will create a new record. The all-time intraday high is 1897.28. Key S/R is 1878, 1884, 1891, 1894, 1897 and 1900. Price jumps up through 1884 so a test was needed at 1891, which also gave way, so 1894 R is next. HOD is 1893.81 so the 1894 is holding, so far.

The indicators are long and strong except for the MACD line and histogram that are not as enthusiastic about price jumping higher. Stochastics are at the ceiling as well and only want to see topping action. Price may peak like the prior thrust that occurred two days ago so perhaps from 2 to 5 candlesticks which is one to three hours time. The 1-hour and 2-hour charts are similar with mixed indicators and if it takes the 2-hour from one to three candlesticks to sort things out that would be 2 to 6 hours time so the SPX may remain buoyant through today. Interestingly, markets are bullish from an OpEx Tuesday low (tomorrow) into a Wednesday high. The full moon is Wednesday and markets are typically bullish through the full moon. Everything is going the bulls way; they are on easy street.

Watch the 1894 resistance, if violated, then a test of the all-time high at 1897 is a given, and the Dow punched through its all-time high a short time ago. Projection is for price to hold at 1894-1897 but if the RTH moves above 58.68-58.70, the bulls are going to jam the SPX above 1900 probably today. Market bears must hold RTH 58.68 with all their might. RTH is currently printing.....wait for it..... 58.68. The retail sector, RTH 58.68, will provide the answerThis 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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