Monday, August 10, 2015

SPX 2-Hour Chart Sideways Symmetrical Triangle

Here is an update of the SPX 2-hour chart. You can scroll back to the prior post to compare the progression. Price came up to tap on the upper trend line at 2110-2113 but was spanked down unable to overcome the trend line resistance. Price returned to the inside of the sideways symmetrical triangle and then fell out the bottom side at 2080-2085. The market bears are in the driver's seat to finish trading last week, however, the bulls are launching a move higher to begin the new week of trading which will back kiss the lower trend line for a bounce or die decision.

S&P futures are up +14 pre-market to begin the week. The SPX 2091 level is strong price resistance. The lower trend line of the triangle is 2085. Price pierced the lower standard deviation band (pink) so a move back to the center line, which is also the 20 MA at 2091 is on the table. Thus, the market forces line up for a move to 2085-2091 where price must decide if it wants to fail in force, or, recover and return inside the safety of the sideways triangle pattern.

Market bulls would have been better off for the SPX to print below 2060 so positive divergence would occur that would have given a lot of juice for the upside. Instead, the indicators and moving averages line out sideways hinting that price wants to continue sideways. One side or the other will win the sideways triangle battle. 70 handles are on the line. A successful back test of 2085-2096 today and move lower will place the bears in firm control targeting 2000-2010. If the bulls create a strong rally and bust a move higher breaking out above the triangle at 2100 the upside target is 2170-2180.

Price is below the 50-day MA at 2096.30, 20-day MA at 2102 and 20-week MA at 2097.45. Price is above the 10-month MA at 2073, 200-day MA at 2073.14, 12-month MA (the cliff) at 2060, 50-week MA at 2057.83 and starting year number at 2059. The important 200 EMA on the 60-minute chart is 2096.33 signaling bearish markets for the hours and days ahead. Watch that 2096-ish level closely; the 2091-2096 level is a critical pivot area for markets with bears winning below and bears above. 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 Tuesday morning, 8/11/15: Stocks rally strongly on Monday with the SPX rocketing up through the moving averages listed and up to the top trend line of the triangle at 2102-2104. Price will either bounce of die from this level. The battle for the winner of the sideways triangle pattern continues.

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