Wednesday, May 14, 2014

SPX 30-Minute Chart 8/34 MA Cross

The 8 MA is above the 34 MA signaling bullish markets for the hours ahead but the bears are pushing hard today trying to create a negative 8/34 cross. If the bulls are going to save the day, they will spike the markets higher over the coming hour or so. The strong 1891 support is important and price bounced on its first test today at 1891.46.

The RSI and stochastics drop under 50%, a bearish indication, and the red lines show weak and bleak indicators so a lower low in price is likely desired even after any near-term bounce occurs. Bears got nothing until they receive the negative 8/34 cross and then they can celebrate. Bulls will likely try to fight back especially with volatility not ramping up today and instead only flat to slightly higher and a low TRIN remaining under one also helps the bull case. Retail is weaker with RTH under 58.69 so this places a ceiling on the market upside. Watch the 8/34 cross today. 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 12:54 PM:  The 8 MA stabs down through the 34 MA signaling bearish markets for the hours ahead. Watch to see if the bears can maintain the negative cross into the closing bell. The 8 MA is 1894 and dropping so as long as the SPX stays under 1894 and moves lower, the bears are fine going forward and market selling will continue. Bulls will be back in business if they push the SPX above 1894 and higher. The SPX is printing 1893.61.......

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