Thursday, December 18, 2014

SPX 1-Hour Chart 200 EMA Cross

The SPX is under the 200 EMA on the 60-minute at 2030 signaling bearish markets for the hours and days ahead, however, the S&P futures are up +20 pointing to a gap-up opening. Price wants to test this critical 200 EMA level. The SPX has violated the upper standard deviation band so a move back to the middle band at 1994 is in play but the indicators are all long and strong (green lines) wanting to see higher highs for price for a few candlesticks ahead (hours ahead). There is a gap at 2032-2035 that needs filled at some point forward.

The most important take-away on this chart is the 200 EMA at 2030 since it will tell you if stocks finish strong to end the year, or, if they fall on their face and begin selling off again. Very simply, if the SPX moves above 2030, the bulls win and markets will rally into year end. If the bears can hold the line at 2030 preventing the bulls from capturing the 200 EMA, markets will trail lower and sell off into the end of the year.

At the closing bell today, both bulls and bears will be popping the wine bottle corks but only one side will drink to celebrate while the other drinks to drown their sorrows. It all depends if price closes above or below the 200 EMA. 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.

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