Sunday, May 8, 2016

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

One of Keystone's key short term market signals is the 200 EMA cross on the 60-minute chart. The SPX is under the 200 EMA at 2061 signaling bearish markets for the hours and days ahead, however, price is only 4 points on the bear side so the bulls may try to push the SPX above this critical moving average. Pay attention to the SPX 2061 level. Bulls win for the hours and days ahead above 2061 while bears win under 2061.

The red rising wedge, overbot conditions and neggie d are textbook charting identifying the top at 2111. The green falling wedge, oversold conditions and positive divergence are textbook charting identifying the bottom at 2039. The indicators are long and strong in this 1-hour time frame so higher highs in the SPX should be expected for a couple-few hours ahead.

Note how price is dancing to and fro along the 200 EMA. This is testimony to the importance of this key level. Price has not back kissed the 200 EMA after the failure 21 candlesticks (hours) ago, so the SPX may simply climb up to perform the  back test of the 2061 level where a bounce or die decision will occur. Watch 2061 on Monday since it tells you a lot about which side will win going forward. 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 9:15 AM EST Before the Tuesday Opening Bell, 5/10/16: The SPX fights at the 2061 decision line all day Monday and ends with the bears in the lead with the SPX down to 2058, however, S&P futures are up +8 this morning. The 200 EMA on the 60-minute is 2060.93. The fight at 2061 continues for Tuesday. Bulls win big above 2061. Bears win big below 2061.

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