Tuesday, September 23, 2014

SPX 60-Minute Chart 200 EMA Cross

Here is some new drama to monitor; the important 200 EMA on the 60-minute. Remember last week we watched for the potential breach at the 200 EMA only to see the bulls recover? Here we are again. The 200 EMA on the 60-minute is 1988.86. Price is above signaling bullish markets for the days and hours ahead, however, the SPX is teasing a potential failure only about one point away. The initial market price action did pierce under the 200 EMA. If the SPX loses the 200 EMA, bad things will quickly happen to the stock market.

The 8 MA is below the 34 MA on the SPX 30-minute chart signaling bearish markets for the hours ahead so either the 30-minute chart will prove correct or the 60-minute chart above will prove correct. The charts will agree on the same direction going forward so monitor the situation until the winner is known.

If the SPX remains above the 200 EMA a relief rally will occur, however, if the 200 EMA fails, the stock market can fall down the rabbit hole extremely quickly (a market flush may occur). Watch 1989 as a major bull-bear line in the sand. 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 11:03 AM: SPX 1991.

Note Added 11:07 AM: SPX drops to 1990.44..... 1990.24 ...... the 200 EMA is 1988.87 .... whoa, 'slip-sliding away' as Paul Simon would sing...... the SPX is 1900.03....... bounce ...1990.50. The bears are so close they can taste it. If the bears cannot push the last point lower to unlock market carnage, then the bulls will take the ball and run with it. The fight continues.

Note Added 11:11 AM:  Ho...whoa .... SPX 1988.84 a rupture of the 200 EMA ..... As the Apollo astronauts said decades ago, "Houston, we have a problem."

Note Added 11:13 AM: Price drops under the 200 EMA signaling bearish markets ahead and a potential flush in the stock market imminent. Watch to see if the bears can remain below, or not. The SPX is 1988.48. The 200 EMA is 1988.86. It is bounce or die time. Bulls will be crying in their beer this evening if they cannot create an immediate bounce.

Note Added 11:47 on Wednesday, 9/24/14: So the bears created the 200 EMA failure yesterday into today and a flush occurred but a short time ago the bulls push back above the 200 EMA at 1988.69. The SPX is at 1991.73. The fight continues. Watch the VIX 200-day MA at 13.54 to see if the bears can hold the line, or not. VIX is 13.95. Bears are fine if they keep VIX above 13.54. Bulls will make headway higher if they can push VIX under 13.54. Note that market were weak moving through the new moon as is typically the case each month. This week after OpEx in September is typically down 80% of the time and so far that is playing out. Rosh Hashanah begins tomorrow so volume will likely trail off into the Friday close. Bears need the SPX back under 1989 so they can resume the downside.

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