Monday, December 8, 2014

SPX 30-Minute 8/34 MA Cross

The 8 MA stabs down through the 34 MA at 12 noon ushering market bearishness for the hours ahead. The indicators are weak and bleak so one to four candlesticks will be needed to form possie d although price is already at oversold conditions in this 30-minute time frame chart. Price is at critical S/R at 2057-2058 deciding to bounce or die. This is where that 'W' pattern bottom occurred five days ago. The rising wedge, overbot conditions and neggie d created the spank down from the top. Prices would be expected to remain soft for a few candlesticks forward. 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 1:52 PM: The SPX LOD is 2056.44. As highlighted on the weekend, price needs to back test the 20-day MA at 2056.53. It just did. It has shown this important moving average respect but the jury remains out. If VIX remains above 14 heading higher the SPX will fail through the 20-day MA. This 2056-2058 has developed into a battleground level. VIX is at 14.30. If the VIX moves above 14.43 the stock market selling will accelerate and equities will take a strong leg lower and Keybot the Quant algorithm will likely flip short. TRIN is 1.81 favoring bears and the sell side today.

Note Added 2:55 PM: The VIX collapses from above 14.43 down to 13.83 so the fix is in. The SPX recovers to 2063. Nothing to see here move along, move along. The bears slipped on a banana peel, fell down the basement steps and are now laying next to the mason jars, furnace filters and a jar of nuts and bolts. Bears got nothing unless they can push VIX above 14.43. VIX is at 13.79. Bulls are sitting on easy street if the VIX drops under 13.77 (200-day MA).

Note Added 3:05 PM: The MACD line continues lower for the 30-minute chart above so a couple more candlesticks are likely needed before a bottom is placed so stocks may remain weak through the bell into tomorrow. The VIX 13.77 is the key tool that tells you the market answer right now. VIX is at 13.93 liking the bear camp.

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