Wednesday, September 17, 2014

SPX 30-Minute Chart 8/34 MA Cross

The 8 MA remains above the 34 MA signaling bullish markets for the hours ahead. The 8 MA is at 1999-2000 so bears need to keep price below this level to curl the 8 MA downwards for a potential negative 8/34 cross either late today or tomorrow. If Fed Chair Yellen speaks dovishly this afternoon the bulls will likely keep running higher. The stochastics and ROC are negatively diverged creating the spank down in this 30-minute time frame but price will likely want to come back up again to the strong 2002-2003 zone to take another look. When that occurs watch to see if negative divergence forms as the thin lines in the right margin illustrate.

The brown lines show key S/R at 2011, 2007, 2005, 2002-2003, 1998, 1991, 1988 and 1985-1986. 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 9:39 AM: SPX above 2003 threatening a break out and next target is 2005 R.

Note Added 9:40 AM:  Bring up the 30-minute chart; price prints a HOD at 2003.47 thus far. So 2005 is on the table. With the new price high, all indicators are negatively diverged except for the MACD line squeezing out some more juice so another higher high is likely in this time frame. Thus, perhaps a half hour or hour sideways, then half hour or hour down, then back up for a half hour or hour to satisfy the MACD long and strong profile, then potential roll over. You get the picture. Markets will probably play around and simply stagger into the Fed drama beginning at 2 PM EST (7 PM London time) when the story will be written.

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