Thursday, September 25, 2014

SPX 60-Minute Chart 200 EMA Cross

Price has been playing games over the last couple days above and below the important 200 EMA on the SPX 60-minute chart at 1988.61. (Reference the previous chart from a couple days ago.) As mentioned with the prior missive, bad things will happen to stocks if the 200 EMA fails, and it failed, so bad things are happening. A back kiss will be needed to the 200 EMA at some point forward. Note the drop over the last three hours began with the doji candlestick top.

With the large collapse, the indicators are positively diverging so price will likely stabilize sideways. A large drop like this is creating technical damage as evidenced by major stocks and indexes losing their 50-day MA's. The SPX 50-day MA is 1976.45 so look for price drama around this level today and perhaps into the closing bell. The 1973 is very strong support and price is stabilizing at this level.

The SPX drops under the 200 EMA signaling bearish markets for the hours and days ahead. The bears finally wrestle back control of markets after a never-ending bull party. Major S/R levels are 1985-1986, 1976.45, 1973, 1968, 1963, 1960-1961, 1951 and 1924. So price is playing around inside the 1968-1986 zone. Use the S/R levels as a guide. 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 9:05 PM:  The SPX ends at 1966 dropping 2 handles in the last one minute but the 1968 support held during the afternoon. The 1963 would be the next strong support. That is a strong support gauntlet at 1960-1963 which would send price to 1951 if it fails. The SPX will have to back kiss the 200 EMA at 1987.80 (call it 1988) at some point forward.

Note Added 10:20 AM on Saturday, 9/27/14: The SPX comes up to back kiss the 200 EMA at 1986.95; that did not take long. Price teases 1987 and then drifts lower into the closing bell on Friday closing at 1982.85 four points below the important bull-bear line in the sand keeping the bears in control. The longer that the SPX stays under the 200 EMA at 1987 the more the stock market negativity and selling pressure will increase.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.