Tuesday, September 30, 2014

SPX 60-Minute Chart 200 EMA Cross

The SPX remains under the 200 EMA on the 60-minute at 1985.97 signaling bearish markets for the hours and days ahead, however, the bulls are running higher and want to regain control. The HOD is 1984.21 only one point away. The 1985-1986 area is formidable resistance and the 1985-1988 zone is a strong resistance gauntlet. Bulls win big above 1986-1988. Bears win if price stays under 1985. The SPX is currently printing 1983.

The bulls do not want let the bears shine and know if the 200 EMA resistance is taken out to the upside the bears will crumble and a relief rally will be in full gear. The battle lines are drawn at 1985-1986 and specifically 1986. The indicators are long and strong so a few more upside candlesticks are desired in the 2-hour time frame which may maintain market buoyancy today and tomorrow. Looks like an intense fight may be planned for the 1985-1988 S/R battle zone. Bears must maintain price under 1986 or the bulls are going to take the ball away. 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 11:33 AM: The SPX prints a HOD at 1985.17. The drama and market theatrics continue. Watch the BPSPX 70 level, the 50-day MA at 1977, the 200 EMA on the 60-minute at 1986 and the 1985-1988 resistance ceiling as the key gauges for market direction. VIX drops to 15.20 which provides bull fuel. Interestingly, however, the TRIN is 1.38 well above 1.00 and favoring bears despite the stock market moving higher.

Note Added 11:49 AM: Markets are psycho today coming off the highs with SPX now at 1980. Note how the bond market remains calm, the adult in the room, with the 10-year motoring along sideways at 2.49%. The SPX will likely make additional runs at the 1985-1988 resistance gauntlet.

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