Sunday, December 14, 2014

SPX 60-Minute Chart 200 EMA Cross Downward-Sloping Channel Lower Band Violation

The SPX remains under the 200 EMA at 2038.15 signaling bearish markets for the hours and days ahead. A back kiss is likely needed of this critical moving average and the 2040 is very strong and key resistance as well. The bulls will receive the joyous finish to the year if the SPX punches up through 2038-2040. Bears are fine perhaps for weeks, months and even a year or two if they can hold the 2038-2040 resistance.

The 1-hour chart was posted Friday morning and darn if that smidge of negativity remaining with the money flow pulled price lower for another look. The collapse in Friday trading now created lower lows for the MACD line so after any bounce for price the current level at 2002 should be retested again. The lower standard deviation band is violated so a move back to the middle band at 2034 and falling is on the table. The middle band will line up with the 2032 R and also the 2024 R in a couple days so these levels serve as upside targets.

Key support/resistance is 2046, 2040, 2038.00-2038.15 (strong support and the 200 EMA on the 60-minute), 2032, 2024, 2018, 2011, 2002-2003, 2000.75 (50-day MA), 1998, 1992 (38% Fib retracement)1990.75 (20-week MA)1987.96 (100-day MA), 1985-1986 and 1978.

Keybot the Quant remains short and the algo is tracking financials; XLF 23.92 as a bull-bear line in the sand. If the bears push XLF under 23.92, stocks are toast. If the bulls keep XLF above 23.92 they should be able to stabilize the stock market sideways.

The SPX may stutter sideways through 1998-2018 into Wednesday. If 1998 fails, price is going to test the strong 1985-1991 support gauntlet. If bulls can push above 2018 they can gain some upside traction. 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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