Monday, August 4, 2014

SPX 30-Minute Chart 8/34 MA Cross Fibonacci Retracements Downward-Sloping Channels

The 8 MA remains under the 34 MA signaling bearish markets for the hours ahead. The 8 MA is at 1927 so the bulls need price to print above 1927 to keep bringing the 8 MA higher for a potential positive 8/34 MA cross. Bears must keep the SPX under 1927 and heading lower. The 38% Fibonacci retracement, if the 1915-ish bottom holds, is at 1945 in the area of strong horizontal resistance at 1949 and 1951. The 50-day MA is 1954.32 so the 1945-1955 zone of resistance is a reasonable upside target for a recovery bounce.

First thing is first. The green lines for the indicators show long and strong behavior so higher highs are desired with price for the candlesticks ahead. A move to 1930-1932 is very doable. Last Friday's HOD is 1937.35 so this number may see drama today. Thus for a recovery bounce, the 1930-1932, 1937, and 1945-1954 levels serve as upside targets.

It would not be surprising to see price float up to test 1937 R. At that time study the indicators to see if neggie d is formed, or not. Key S/R is the 50-day MA at 1954, 1949-1950, 1945 (32% Fib), 1937, 1931, 1924 and 1912. If 1912 is lost, the SPX will likely print sub 1900 in relatively short order. Watch the 8/34 cross to determine who is wining. 
The beat goes on. 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 8/5/14 at 2:30 EST: The 8 MA pierces up through the 34 MA yesterday afternoon signaling bullish markets for the hours ahead. The relief rally occurs. Bears need to regain the negative 8/34 MA cross. The SPX inches higher to test the 1931 R and bingo, the bulls push through with 1937 R on tap. Price attacks 1937 as the last hour of trading began and punches up through creating an acceleration to the HOD at 1943 tagging the 32% Fib discussed above. The SPX may play around in this 1937-1945 area during Tuesday's trade. A move above 1943-1945 sends price to the 1949-1950 R quickly. A drop under 1937 sends price back down to 1931 support; call it the 1930-1934 support zone. Bulls win above 1943 and start winning big above 1945. Bears win under 1937 and win big under 1921. A move through 1922-1942 is sideways action for Tuesday.

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