Friday, October 17, 2014

SPX 30-Minute Chart 8/34 MA Cross

The bulls are running with the ball. The 8 MA crossed above the 34 MA yesterday afternoon signaling bullish markets for the hours ahead. Price launches higher today to HOD at 1893 so far. The indicators remains long and strong, ditto on 1-hour and 2-hour charts so the market buoyancy has a good chance of remaining well through the afternoon.

Keystone's critically important SPX 12-month MA cross signal, the cliff, which tells you if markets are in a cyclical bull or cyclical bear is in play. The 12-month MA is 1895-ish signaling a cyclical bear market for the months or more ahead but this could change in a heartbeat if the bulls can push higher. If the SPX overtakes 1895 then 1900 plus is coming quickly and the bulls will extend the relief rally for price to attack the 200-day MA at 1906 and 10-month MA at 1908. The 1895 level is a very big deal. It looks like price may want to poke up through and it would not be unreasonable to see a several-day fight between 1888-1908 since this is the key moving average cluster. The 50-week MA is 1888. The key S/R is 1928, 1924, 1910, 1897, 1889-1891, 1884, 1878, 1872-1874, 1848, 1841, 1828-1831 and 1808. Price is teasing the 1889-1891 area now which would lead to a test of the 1897 resistance which places the critical 12-month MA described in play. 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 11:17 AM: The importance of the current price action cannot be understated. The SPX is at 1894.29 a whisker from the 12-month MA at 1894.74 (only 45 pennies away) which will determine the short-term, intermediate-term and even long-term fate of the stock market going forward.

Note Added 11:20 AM: Bulls breach the 12-month MA. HOD 1894.86. Whoa. Hold on. The bears spank price immediately lower to 1893. Do you think this level is important? The fight will probably continue all day. A bull and a bear are wrestling on the edge of a cliff at SPX 1895; one of them will fall over the side the other one will win. Which side will win?

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