Wednesday, February 17, 2016

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

An important cross occurs this morning. The 200 EMA (at 1908) on the SPX 60-minute chart is a key short term signal for the stock market and price moving above says equities will be bullish for the hours and days ahead. The point where price crosses above the blue line represents where the bulls punched the bears in the face. Note how the bulls attempted a rally in early February but were slapped down by the bears.

The market bears must slap price back under 1908 today or tomorrow to prevent the positive cross. If so, the bears will celebrate with wine and song. The bulls need to keep price above 1908 since it signals that the upside party in stocks has only just begun. Watch the 200 EMA on the 60-minute at 1908 like a hawk; it tells you near term direction for stocks.

The indicators are long and strong but beginning to hint at a roll over in this time frame. The 2-hour chart is long and strong. Thus, stocks may peak in the hour time frame say this afternoon and travel lower but the 2-hour chart should bring prices back up tomorrow. See the 2-hour chart for more technical analysis. That 1908 level says a lot so keep an eye on it. 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 Sunday Morning, 2/21/16: The SPX closes Friday at 1918 remaining above the 200 EMA on the 60-minute at 1909.92, call it 1910. Watch this 1910 level like a hawk; it is super critical.

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