Friday, June 13, 2014

SPX 30-Minute Chart 8/34 MA Cross

The 8 MA stabs down through the 34 MA on Wednesday signaling bearish markets for the hours ahead. Bulls got nothing until they create a positive 8/34 cross. The 8 MA is 1931.63 and dropping so as long as the SPX price stays under 1931 and continues lower bears are fine. A price move above 1931 will indicate that the bulls will create a market recovery move today and into the weekend.

The pink H&S plays out with head at 1955 and neck line at 1942.5, that failed, targeting 1929-1930 that was tagged in yesterday's trading. The red lines show the neggie d spank down that was highlighted as it developed over the last few days. The green lines show positive divergence in place with the lower lows in price. The MACD line is iffy that it is placing a bottom so the consolidation area at 1920-1928 remains in play. Note how price only briefly teased under the 1928 support intraday and recovered. Projection is that the congestion zone below holds as support and price should move higher receiving lift from the positive divergence. The 8 MA may come up to the 34 MA today for a test that will tell you who rules the roost moving forward.

A back kiss of the 1939-1943 resistance area is a very reasonable expectation moving into and through next week and overall a sideways stumble may be on tap as the Iraqi violence and oil prices are monitored closely. A full moon occurs today and equities are typically bullish, over two-thirds of the time, moving though the full moon. Watch the 8/34 MA cross which is the most important item on the 30-minute chart.

Interestingly, the 1-hour and 2-hour chart indicators are weak and bleak so although the 30-minute above may be looking for a recovery in price, the 2-hour chart negative influence will likely re-exert itself to the downside. What does this mumbo-jumbo mean? The SPX should recover today due to the positive divergence shown above but either late today or on Monday, market weakness will likely reenter to place a bottom in the 1920-1928 congestion zone. Then price should recover for a day or few next week and probably place a more substantive market top (perhaps at the 1939-1943 R mentioned above), and roll over. 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.