Tuesday, February 21, 2017

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

Here is the very short term (VST) look at the SPX in the 30-minute time frame. One of the first signs that the bears will be gaining traction over the bulls and sending stocks lower will be the 8 MA crossing down through the 34 MA on the 30-minute. The 8 is above the 34 right now projecting bullish stocks for the hours ahead. The bears can only curl the 8 MA downwards by price dropping below the 8 MA.

See that spike high in price that occurred six candlesticks ago. That would be 3 hours of time ago so about 10:30 AM EST this morning. Price makes the new high but the RSI remains elevated and the ROC was trying to sneak higher as well. This hints that price wants to come up one more time in this 30-minute time frame so the indicators can firmly print negative divergence and place the top.

The 2-hour chart is cooked and wants price to move lower in the 2-hour time frame. Thus, in this VST, keep the door open for price to come up for a matching high at 2364-2367 over the next hour and this should come with neggie d across all indicators, which should jive with the 2-hour chart, and place the near-term top. As long as the indicators do not print above the thin red lines in the margin, the chart is cooked. So price either falls under its own weight from here, or will sneak higher over the next hour or so and place that matching price high that locks in the neggie d and then downside ahead.

Bears, however, got nothing until they create the negative 8/34 MA cross. Note earlier in the month the bears tried to push lower but the bulls prevented the negative 8/34 cross slapping bears in the face. Slap, slap. Then only last Friday, bear push lower in the morning only for the bulls to arrive touting Presdient Trump's tax reform package, and slap the bears silly once again preventing the negative cross. Slap, slap.

Judging from the set-up 30-minute and 2-hour charts, price should move lower in the hourly time frame going forward and the 8/34 MA negative cross on the 30-minute would likely, or potentially, occur tomorrow. The behavior when the 8 comes down to test the 34 will be key. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.