Monday, March 14, 2016

SPX S&P 500 Daily Chart Bounce or Die from Critical Moving Average Cluster

A big bounce or die decision is occurring at 2015-2019. The 200-day MA is 2019.40, 10-month MA 2015.29 and 100-week MA 2015.28. Bulls win above 2019. Bears win below 2015. If above 2019, price will quickly move to test the critical 12-month MA at 2029 which identifies a cyclical bull market versus a cyclical bear market (currently in a cyclical bear). If the bears win today and price drops under the 10-month MA at 2015, stocks will likely sell off in force targeting the 2002 level in quick order. Who will win?

The histogram, stochastics and money flow are negatively diverged wanting price to roll over to the downside but the MACD line is long and strong wanting to see another high in the SPX after any pull back occurs in this daily time frame. The NYMO and CPCE put/call continue to hint that a near-term top is in place for stocks at any time. The Fed decision is on Wednesday which will dramatically impact stocks. At some point forward, price has to retreat to back kiss the 20-day MA at 1962 and rising and 50-day MA at 1931 and moving sideways. 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 11:59 AM: The SPX is at 2015.19 and the 10-month MA is 2015.07. What will happen? This is serious business. Bounce or die.

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