Friday, August 22, 2014

SPX 30-Minute Chart 8/34 MA Cross

The 8 MA is above the 34 MA signaling bullish markets for the hours ahead and this has been the case for the last couple weeks since Putin's words created the 8/8/14 price bottom at 1905. Bears got nothing until the receive a negative 8/34 cross. The SPX is under the 8 MA so this will curl the 8 MA downwards to the 34 MA. The red lines show the negative divergence top just created. The 2-hour and 1-hour charts are also negatively diverged agreeable to market weakness ahead for the short term. Markets take Fed Chair Yellen's speech today without much reaction. ECB Prescient Draghi's notes will hit at 2:30 PM EST so market will pivot on that news. The dollar is running higher sending the dollar/yen above 104. The 10-year Treasury yield moves higher to 2.44% with the higher dollar.

The red lines show weak and bleak indicators wanting to see lower lows with price so it looks like the chart is set up to decide if it wants to create a negative 8/34 cross exactly when Draghi will be walking to the podium this afternoon.

Keybot the Quant algorithm remains long and is watching volatility and copper as the key market drivers currently. Copper remains strong helping bulls. The VIX, however, keeps inching higher now at 12.44. Bears need VIX above 12.80 which tells you the market sell off is real. If the VIX remains under 12.80, the bears got nothing. 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 11:07 AM: The 8 MA is curling downwards with a negative slope while the 34 MA continues higher with a positive slope creating a collision course for this afternoon where a winner of the 8/34 cross will be decided going forward. Mario Draghi holds the fate of the markets in his hands. Draghi speaks in 3 hours and 20 minutes. The SPX will probably move sideways through 1985-1992 to create higher drama into the Draghi pronouncements.

Note Added 8:47 AM on Monday, 8/25/14: The SPX leaked lower in Friday trading with the 8 MA just shy of crossing down through the 34 MA. The weekend plays out and the only way the bulls could prevent a negative 8/34 cross is to create a strong upside move at the market open, and, as fate, and central banker money, would have it, the bulls are set for a 7 to 10 point move higher in the SPX at the opening bell. Thus, the 8 MA will likely remain above the 34 MA, to begin the day, continuing to signal bullish markets for the hours ahead.

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