Monday, December 28, 2015

SPX S&P 500 Monthly Chart 12 MA Cross is a Battle for Cyclical Market Control

The SPX 12-month MA at 2053 is the edge of the cliff for the stock market; the demarcation between a cyclical bull market ahead for weeks and months to come versus a cyclical bear market. Price is at 2057 forecasting a cyclical bull market  ahead, however, this fight will likely continue into early January. The 10-month MA is 2054 another important level and since it is with the 12-month MA the 2053-2054 level is the most important level in the markets right now. Bulls win big above 2055. Bears win big under 2052.

The year began at 2059 with only three trading days remaining (brown line in right margin). The blue line is the 2080 level where December began and will determine if the month finishes positive or negative. The CPCE and CPC put/call ratios catapult higher indicating that a near-term market bottom is likely say tomorrow or Wednesday so price may seek out the 2059 and 2080 targets by Thursday.

Bulls are cruising as long as they stay above the 12-month MA. Bears got nothing unless they can push the SPX under 2053 and then carnage would begin. 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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