Tuesday, March 29, 2016

SPX S&P 500 5-Minute Chart Battle for the 12-Month MA at 2030

The SPX drops at the open to test the critical 12-month MA at 2030 that is a key tool in determining a cyclical bull market versus a cyclical bear market. Price bounces off the key level in the early going. The SPX is above 2030 signaling bullish markets for the weeks and months ahead, however, obviously, this fight is ongoing. Fed Chair Yellen speaks shortly and will impact markets.

Bulls win big above 2030. Bears win big under 2030. Since this is such a critical level, if 2030 fails, stocks may flush quickly lower. 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 10:08 AM EST: The SPX pops to 2034 after the Consumer Confidence data reports at 96.2. The battle for the 12-month MA continues. Both sides fully realize the seriousness of this level.

Note Added 12:28 PM: Yellen is flapping her dovish wings so stocks rally. SPX is up to 2041 now nine solid points above danger. The bulls cheer for Fed Chair Yellen, Queen of the Doves! The central bankers are the market. The SPX pops 7 points to 2044 as Yellen continues talking.

Note Added 5:15 PM: The bulls punch the bears in the face. Chair Yellen creates an upside orgy of  bullish joy after flapping her dovish wings. The SPX ends the session up 18 points, +0.9%, to 2055 now positive on the year and at a new closing high for this year. Another key cyclical market signal is the 40-week MA on the NYA at 10156 so watch this level closely the remainder of the week. Bulls will maintain market upside with NYA above 10156. Bears will stop the upside rally and begin selling in equities if the NYA loses the 10156 level.

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