Monday, January 30, 2017

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

A key ST (short term) market indicator is the 200 EMA on the 60-minute chart now at 2264.80 and slight rising. The SPX is above 2265 so the bulls have no cares or worries. They laugh each day at the bear's feeble attempts to create selling pressure. As long as the SPX remains above 2264-2265, the bulls are in full control. Market mayhem, however, begins under 2264.

The LOD today was 2268 in the neighborhood of the 200 EMA. Price bounced but the RSI and MACD line remain weak and bleak wanting to see another lower low in this hour time frame. Perhaps price will come down to shake hands with the 200 EMA and make a bounce of die decision which will dictate broad market direction for the days ahead.

The brown lines show strong S/R at 2298, 2278, 2272, 2263 and 2234. The 20-day MA is 2273. The 200 EMA on the 60-minute is 2265. The 50-day MA is 2247It would be reasonable for price to test the strong 2278 support and decide to bounce or die.

The SPX gapped-up higher last week from 2282 to 2290-ish. This placed price on an island. The SPX liked hanging out on this Gilligan's Island for a few days but faced the edge of the island this morning at the opening bell. Price collapsed straight back down through the gap creating an island reversal pattern.

The 200 EMA is for all the marbles. Bulls are enjoying each day of life always rewarded by the central bankers with price above 2265. However, the bears are plotting revenge which begins below 2264-2265 where the wheels would fall off the stock market. 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.

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