Monday, June 23, 2014

SPX 30-Minute Chart 8/34 MA Cross Overbot Negative Divergence

The 8 MA is above the 34MA on the SPX 30-minute chart signalling bullish markets for the hours ahead. Bears got nothing unless they create a negative 8/34 cross today. The 2-hour chart wants to see a spank down so if equities weaken today watch for the 8/34 negative cross to signal that down is the real deal, or not. The 8 MA is moving flat at 1962 so very simply, the bulls win with the 8 MA moving higher if price stays above 1962 and moves higher. The bears will curl the 8 MA lower for a potential negative 8/34 cross if the SPX drops under 1962 moving lower.

The indicators are overbot and negatively diverged creating the spank down about five hours ago and ready to create another. Note the juice in the RSI over the last couple one-half hour candlesticks. The 2-hour chart hints that price may play around at the elevated levels for a few hours to begin the week so that little RSI juice above may be creating enough oomph to keep price elevated moving sideways in this time frame. The expectation, like the 2-hour, however, is lower today with price peaking some time today. Bears have been beaten daily for almost two weeks but the negative 8/34 cross, if it occurs, will show that they have some fight remaining.

If the positive 8/34 cross remains, the bulls are cruising, occasional walking across the aisle to slap the bears in the face just for fun. Rich Uncle Fed watches and encourages the bullish traders' spoiled behavior since there are unlimited funds to send stocks higher and there are no consequences. Fed Chair Yellen cheer leads the stock market and plans to run the printing presses forever. 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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