Tuesday, January 5, 2016

SPX S&P 500 30-Minute Chart 8/34 MA Cross Bear Flag

The SPX 30-minute chart with the 8/34 MA cross is a key short term signal for the stock market. The bulls were enjoying a Santa Claus rally until New Year's Eve when the 8 MA stabbed down through the 34 MA ushering in bear action for the hours ahead. Now you can see that the stock market must make a key decision tomorrow morning; bounce, or die.

The SPX is at 2017. The 8 MA is at 2014. The 34 MA is at 2018. The 8 MA is under the 34 MA predicting bearish action for the hours ahead, however, the cluster at 2014-2018 can resolve in either direction tomorrow. Price has to be above the 8 MA to pull the moving average upwards to create a positive 8/34 MA cross and it is so the 8 MA will continue higher. Market bears need the SPX under 2014 from the get-go tomorrow, otherwise the bulls will have the upper hand.

Conversely, if the bears win tomorrow's fight, and price collapses from current levels, dragging the 8 MA lower and reaffirming the bear path ahead, the pink bear flag pattern would be in play which targets 1939. The green lines show long and strong behavior wanting to see another higher high in price in this one-hour time frame although the histogram is in negative divergence.

The CPC and CPCE put/call ratios remains subdued and the CPCE drops to 0.65. Traders and investors remain relaxed and complacent despite the market weakness this week. Thus, the stock market should remain weak until the put/calls spike higher to show that fear and panic has arrived. Watch that 8/34 MA cross above after Wednesday's opening  bell it is for all the marbles. Market bears need to see a negative three points and more in the overnight S&P futures to gain the upper hand for tomorrow's opening bell. 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 6:28 PM EST Wednesday evening, 1/6/16: The SPX tumbled 26 points, -1.3%, to 1990 and the 8 MA collapses lower with the SPX price maintaining the negative 8/34 cross and forecasting bearish markets for the hours ahead. The SPX is at 1990. The 8 MA is 1990 the same price. The 34 MA is 2003. The 8 MA can only curl upwards if price moves above. Thus, bulls are in the driver's seat above SPX 1990. Bears are in the driver's seat under 1990.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.