Tuesday, July 22, 2014

SPX 30-Minute Chart 8/34 MA Cross Tight Bands Squeeze Out Upside Rally Rising Wedge Overbot Negative Divergence

Here is an update of yesterday's chart. The bulls broke up through the sideways channel at 1976 resistance so 1980 R was attacked which also gave way. This opened the door to test the all-time highs at 1985-1986 and bingo, a new all-time intraday high is printed at 1986.24. The tight bands squeeze out an upside move. The 8 MA crosses above the 34 MA yesterday afternoon signalling bullishness for the hours ahead which occurs today.

The red rising wedge is developing, the stochastics are overbot, the red lines show negative divergence in the multi-day frame as well as VST over the last couple hours except for a smidge of juice with the MACD line. So markets would be expected to top out in 1 to 4 candlesticks so in an hour or two. Thus, perhaps a sell off may appear into the closing bell. AAPL earnings are released after the closing bell and will greatly impact the broad markets.

Key S/R is 1986, 1985, 1980, 1976, 1973, 1968, 1963, 1961, 1960, 1956, 1951 and 1949. Keybot the Quant algo turns bullish today but remember that Keybot is operating as a lower risk lower reward type model and not designed to catch exact tops or exact bottoms. A spike in volatility or weakness in retail, financials or copper will immediately turn the markets negative again. For now the bulls are happy with a happy upside orgy day but the projection is for the SPX to top out perhaps this afternoon. 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 3:50 PM:  The SPX remains elevated today dropping down to 1981 a short time ago receiving some of the neggie d spank down action. The topping out behavior remains in play. The SPX 2-hour chart may try to squeeze out 1 or 3 more candlesticks so the top may be on tap tomorrow. There is 10 minutes remaining to see if the SPX can print a new all-time closing high. The SPX will print a new all-tiem record intraday high at 1986.24. Trannies are at all-time highs again and will be looking for the Dow Industrials to confirm. VIX is 11.92 not moving lower to provide more bull fuel, but not moving higher so the bears do not receive help. Market bulls will need a lower VIX tomorrow to take equities higherTRIN 1.00 dead flat neutral refusing to pick a side today not wanting anything to do with bulls or bears.

Note Added 4:02 PM: The SPX does not print a new all-time closing high.

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