Tuesday, December 15, 2015

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

The SPX remains under the 200 EMA at 2060 so the bears are in control for the hours and days ahead, however, price is rapidly rising and may create a positive cross to place the bulls in control. The indicators are long and strong (green lines), the stoch's are starting to show only a slight hint of neggie d; the overbot conditions help create the current pause in the upward move in price. The long and strong indicators hint at more upside ahead and a likely test of the critical 200 EMA for a bounce or die decision. Perhaps it will sit at 2060 as Fed Chair Yellen brings the tablets down from on high and tells global traders how to trade tomorrow afternoon. The central bankers are the market.

The SPX 2-hour chart also shows long and strong indicators so stocks will likely move sideways to sideways higher into the Yellen circus tomorrow. The indicators may be in negative divergence just as Yellen takes the stage. Of course all bets are off until the Fed provides the answer tomorrow. Bulls need to move above 2060 to signal the all-clear. Bears must keep the SPX under 2060 by all means necessary, otherwise, the bears will fold like a cheap suit and receive coal in their Christmas stockings. Price should test the critical 2060 this afternoon or early tomorrow.

The 10 and 12-month MA's are at 2052-2053 and price is currently battling at this resistance level. Bears need to hold the line at 2052-2053 and spank price lower. The 20, 50 and 200-day MA's are all in the 2062-2069 range. Including the critical 200 EMA discussed above at 2060. Thus, the 2052-2069 area is a major battle zone. Bulls win big above 2069. Bears win big under 2052. The S/R levels can also be looked at as two stages.

First, the 2052-2053 resistance for a bounce or die decision, then, if price moves above, that becomes support and price will move towards the 2060-2069 resistance gauntlet. The HOD today thus far is 2054; the bears are trying to hold the line. 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 7:25 PM EST:  The bears held the line at the critical 2052-2053 resistance discussed above. The battle continues tomorrow. The 100-day MA is 2030.

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