Monday, August 17, 2015

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

The SPX moves above the 200 EMA on the 60-minute chart at 2093 signaling bullish markets for the hours and days ahead. The 200 EMA is a critical signal level for short term and day trading. The last break out to the upside was short-lived after about 6 or 7 candlesticks which is 6 or 7 hours of trading time; about one day. The indicators are lining out sideways as a mixed bag not providing a firm nod to either side. RSI and MACD wants to see continued buoyancy in prices which may occur into the closing bell today. The histogram and stochatics are not impressed with the price move higher and would prefer the SPX to move lower.

Price tapped the top trend line of the downward-sloping channel and was spanked lower but the strength in the RSI and MACD line should send price towards 2100. The key is the 200 EMA at 2093. Bulls win big above 2093. Bears win big under 2093.

Keybot the Quant algorithm is long and tracking VIX 13.48 as a key bull-bear line in the sand influencing market direction. Market bulls win big with VIX below 13.48 and bears win big if volatility, the VIX, moves above 13.48. VIX price is at 13.24 so the bears are getting punched in the face. Bears got nothing unless they push volatility higher. 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, 8/18/15: The bulls punch the bears in the face driving the VIX down through 13.48 at 11 AM and ending at the lows at 13.02. Low volatility sends stocks higher the SPX ending at the highs of the day at 2102. The week begins with a bull party. The same metrics described above; SPX 2093 and VIX 13.48 remain in play for Tuesday.

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