Monday, June 8, 2015

SPX S&P 500 60-Minute Chart 200 EMA Cross Positive Divergence

Drilling down into the very short term (VST), the SPX lost the critical 200 EMA on the 60-minute chart at 2108 signaling bearish markets for the hours and days ahead. The market bears run the show as long as the SPX remains under 2108. The green falling wedge, oversold stochastics and RSI, and positive divergence (green lines) point to a recovery bounce in this very short one-hour time frame.

The 100-day MA is 2084.64 and price prints a low 2086 handle today testing this critical support and deciding whether to bounce, or die. The 50-day MA is 2101.19 so a recovery bounce would target the 2100-2101 level. The 150-day MA is 2071.92. So if 2084 fails, 2072 is on the table. If the bulls bounce price from this 2084-2088 area then the SPX will seek 2100-2101. The SPX daily chart (see previous chart) hints that lower lows in price are desired after any bounce in the daily time frame so perhaps a dip to the 150-day MA will be on tap later this week or next week. 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 6/9/15 at 7:25 AM EST: The SPX slid down the rabbit hole yesterday to 2079. Markets deteriorated after confusing comments out of the G7 meetings including President Obama commenting on the dollar which is a no-no. The positive divergence remains so a bounce is expected as described above in this one-hour time frame. S&P futures are -4 recovering from -9 a short time ago. The opening bell is a couple hours away. The 100-day MA at 2084.54 failed yesterday. The 150-day MA is 2071.85. Price may want to recover and back kiss the 100-day at 2085.

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