Monday, June 2, 2014

SPX 30-Minute Chart 8/34 MA Cross

The 8 MA is above the 34 MA signaling bullish markets for the hours ahead. Negative divergence is in play (red lines) wanting to see weaker prices although the bulls are trying to develop some VST momo. The bulls, backed by the central banker easy money, continue to frustrate bears by reversing any negative 8/34 cross such as 7 days ago. Even as the 8 MA starts to flatten and roll over to the downside the bulls step in with a big goose, as the green arrows show, keeping the 8 MA elevated above the 34 MA and maintaining the Fed booze party higher.

The 2-hour and 1-hour charts are set up or setting up with negative divergence so market weakness is anticipated; a sideways to sideways lower move. With the ECB rate decision only three days away, the markets will likely favor a sideways move until Draghi brings the tablets down from on high and directs global markets on how to trade. Therefore, any weakness early in the week may recover by mid-week as Draghi decides the fate of all markets on Thursday. Bulls are in full control with the positive 8/34 cross. Bears got nothing without the negative 8/34 cross. 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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