Friday, September 25, 2015

SPX S&P 500 2-Hour Chart Lower Band Violation Bear Flag Rising Wedge

S&P futures are up +25 pointing to a rally on tap. The CPCE put/call is elevated to where prior bottoms occurred. The BPSPX, however, issues a market sell signal. The 2-hour chart shows a weak and bleak MACD line wanting another low but a Yellen Rally appears on tap instead. The central bankers are the market.

A bear flag pattern is in play (see previous chart) shown by the red lines which targets 1795 on the downside. Watch to see if the bulls can negate the pattern by moving above the red trend line at the 1960-1980 area. Price violated the lower pink standard deviation line so a move back to the middle line is in play which is at 1946 and falling and a potential move to the upper band at 1981 and falling.

The positive divergence (green lines) were ready to bounce the SPX but as mentioned above regardless of Yellen's words but the MACD line did want one more low in price. The Yellen and central banker joy always overrides the charts and then the charts will adjust. The red rising wedge pattern is in play (thin red lines) which forecasts much lower numbers ahead. Markets should continue the choppy sideways behavior. The 20-day MA is 1958.20 moving sideways so watch this level. The critically important 200 EMA on the SPX 60-minute chart, a key short term signal, is at 1979.52 drifting lower so this is another key area to watch.

Keybot the Quant is short. The algo is fixated on UTIL 569.68 which will be a critical bull-bear line in the sand through next Friday. If UTIL finishes today under 569.68 the bears will have the upper hand come Monday but if UTIL finishes above 569.68 it should be all systems go for the market bulls. A full moon is on Sunday and markets are typically bullish moving through the full moon. 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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