Tuesday, December 30, 2014

SPX 30-Minute Chart 8/34 MA Cross

The bears take a firm shot across the bow at bulls pushing the 8 MA under the 34 MA (by 8 pennies) to signal bearish markets for the hours ahead. If the bulls want to stop the negativity they have to do it pronto, immediately, and spike the SPX higher, otherwise, markets will continue to leak lower. The indicators are weak and bleak and stochastics not yet in oversold territory so the door is open to lower prices. The rising wedge, overbot conditions and neggie d (red lines) shown above and discussed in the previous chart create the spank down. Is the Santa Claus rally in jeopardy? Will Santa fail to call on Broad and Wall? For now, Santa's sleigh is stuck in a roof gutter and may not become airborne again.

December started at 2067.56 and there are less than two days remaining in the month. Key S/R is 2093, 2089, 2075-2076, 2067, 2061, 2057, 2054 and 2040. The 20-day MA is 2054.22. Watch the 8/34 cross on the 30-minute to see if the bears continue to growl, or, if they choke and the bulls take over with the positive 8/34 cross again. 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 11:59 AM: The SPX is 2084.51. The 8 MA on the 30-minute is 2087.30. The 34 MA on the 30-minute is 2089.79. The bears are receiving a touch of downside separation as the 8 MA leaks lower. As long as SPX price stays under the 8 MA now at 2087-ish, market bears are fine and will drag prices lower. If the SPX moves above 2087-ish, then the bulls will be preparing to punch the bears in the face. The 8 MA is under the 34 MA so the bears are in charge for the hours ahead.

Note Added 12:04 PM: SPX 2085.01.

Note Added 1:34 PM: The SPX is 2082.84. The 8 MA on the 30-minute is 2083.82. The 34 MA on the 30-minute is 2089.32. So the separation remains between the 8 and 34 MA's making the bears happy but the SPX price is trailing sideways and not making any headway lower. Thus, the 8 MA drops down under 2084 and price is only one point away. Market bears must keep the SPX under 2083-2084 and heading lower to stay in control. Market bulls need to push the SPX above 2083-2084 and you will notice stocks recovering. This is a pivot point with the SPX at 2082-ish; it must decide to either bounce or die from here.

Note Added Thursday, New Years Day: It died; the SPX gave up the ghost through Wednesday finishing with a negative month (under SPX 2067.56). NYA 10780 is critical and will determine if the bears actually got game, or not.  Happy New Year to all!

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