Wednesday, January 21, 2015

SPX 60-Minute Chart 200 EMA Cross

The battle is raging. The 200 EMA cross on the 60-minute is a Keystone short term signal that paves the way for the hours and days ahead. The 200 EMA is at 2035 Price is 2035.68 piercing 27 cents above the critical 200 EMA cross signaling bullish markets for the hours and days ahead. As this is typed, whoopsies daisies, price falls to 2034.59 remaining in the bear camp signaling bearish markets for the hours and days ahead. This battle will likely continue into the closing bell and the stakes are high.

A back kiss of the important 200 EMA was needed as mentioned the other day so this is the battle and it is time to bounce or die to choose the winner going forward over the next week. The ECB decision is in the morning which throws a wrench into the works; markets may react wildly higher, or wildly lower.

The RSI threw off some neggie d ditto the histogram and ROC but the MACD linie and stochastics want another high or highs in price after pull backs in this one-hour time frame (green lines). The 2-hour chart is more robust with long and strong indicators including the ROC so one to four candlesticks would be needed to create neggie d for a market top and spank down; that is 2 to 8 hours of trading time which places the indexes in the middle of the ECB  tumult tomorrow. If the ECB was not on tap, the chart would likely set up for a market top tomorrow. The ECB creates an unknown.

The 200 EMA at 2035 is key and for all the marbles. Bears will begin the long trek back to their dens to hide if price moves above 2035 as the bulls will pop champagne corks. Bears will growl strongly if the 2035 is rejected since price will likely quickly collapse. 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 12:20 PM EST: The SPX is at 2034.87 the knock-down drag-out tug-o-war battle continues with neither side stepping down. One minute the bulls are winning the next minute the bears. Price is fighting here proving the importance of the 200 EMA now at 2035.41. Mama mia. Price now bounces back above 2035.41. The drama will continue. See who wins the game at the closing bell. Now price is 2035.18 back under.

Note Added 1:27 PM:  SPX 2030.34. The bears are winning but Draghi controls global markets tomorrow. The beat goes on.

Note Added 2:25 PM: SPX 2027.19. The bears are pushing lower but markets are a crap-shoot until Draghi unrolls the sacred scroll and pronounces to the world how to trade markets. The SPX 20-week MA support is 2015.61. The 200 EMA on the 60-minute resistance is 2035.17. Important price S/R levels (reference the SPX S/R missive posted on the weekend) are 2067, 2061, 2046, 2040, 2038, 2032, 2024, 2018-2019, 2011 and 2002-2003.

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