Monday, May 19, 2014

SPX 60-Minute Chart 200 EMA Cross

The bears were disappointed again last week when the SPX recovered back above the critical 200 EMA at 1873.55. The SPX is above the 200 EMA forecasting bullish markets for the hours and days ahead. Bears need to drive price under 1874 or they got nothing. The green circles show the recent successful support tests by the bulls. The bears receive a negative signal on 4/28/14 but that immediately recovered smacking the bears in the teeth. Then on 5/7/14 another failure only to recover again with another smack to the bear's face. Then on Thursday last week another failure. Bears were feeling good until late day Friday when, yes, they got smacked in the teeth again, and today the bulls are running higher.

The indicators show long and strong behavior ahead sans the RSI so higher highs would be expected this morning into and perhaps through lunch time into the afternoon. The top about a week ago was cheesy since RSI still showed strength. The bottom was cheesy as well with the MACD wanting more lows but the bounce occurs anyway. This hints at potential sideways movement through the 1867-1897 range. The brown lines show key S/R at 1902, 1897, 1891, 1884, 1878, 1874, 1867-1868, 1859 and 1849. Price is inching higher this Monday morning to test the May starting number and strong resistance at 1884. The interplay at 1891, 1884, 1878 and 1874 is key. Bulls win with 1884 and 1891 and higher. Bears win with 1878, 1874 and lower. Watch the 20-day MA at 1879.46 with price fighting for this level now printing 1879.63.

If the 200 EMA at 1873-1874 fails, bad things will happen to markets. Bulls are going to have a party if they move above 1884. Watch the financials. Keybot the Quant algoirthm identifies XLF 21.85 as a major bull-bear line in the sand so as long as this is not taken out (now under at 21.78), bears are fine and the market upside should fade. If XLF 21.85 is exceeded, the SPX is likely headed back up to 1900 plus. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.