Friday, December 16, 2016

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

Here is the SPX 30-minute showing the 8/34 MA cross which is a very useful short term market direction indicator. Scroll down and review the prior chart for further analysis. The bears are winning now with the negative 8/34 cross. Price is at 2263. The 8 MA is at 2263. Bulls need to curl the 8 MA upwards to create a positive cross with the 34 MA while bears need the 8 MA to sink lower and drag the broad stock market lower. Thus, use the 2263 as the rudder that steers the market ship today. If the SPX prints above 2263 and trends higher the bulls will celebrate into the weekend and Dow 20K may occur today.

If the SPX drops under 2263 and moves lower, the bears will reverse the tables on the bulls and growl strongly into the weekend. Who will win the fight at the 2263 pivot?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 on Saturday, 12/17/16: The bears push the SPX below 2263 and lower starting at 11 AM EST yesterday so equities trade weaker into the weekend. With the VIX sporting a 12-handle, however, the bears got nothing. The 8/34 MA negative cross is maintained in the chart above so bears are in control for the hours ahead. The 8 MA is now at 2258 and price is...... wait for it...... at 2258. Thus, use 2258 as the key pivot point for Monday morning with bulls winning above and bears winning big if price fails below. The SPX LOD is 2254 which is testing the neckline of the H&S pattern that is in play (see previous chart). If price loses 2254, the market should flush lower towards 2230. Bulls simply need to push the SPX above 2258 and higher to curl the 8 MA upwards and set up a positive 8/34 MA cross and record-breaking highs for stocks, Dow 20K, will be on the way.

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