Sunday, June 11, 2017

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

Another useful short-term market direction indicator is the 200 EA cross on the SPX 60-minute.  The green circle shows price moving above the 200 EMA the exact time that the market bulls punched the bears in the face on May 19. Price came back 6 hours later to back kiss the 200 EMA and bounced, verifying that up was the path ahead over the last month. Stocks never looked back printing all-time record highs last week the S&P 500 prints an all-time high at 2446.20 before collapsing in Friday's trade.

Note how price came down intraday Friday and tested price support at 2415-2416 and bounced. The 2415-2416 is a critical bounce or die price level going forward. The red lines show the negative divergence that created the price top and spank down.

The 2427-2430 area remains a very important support level. If it fails through here again, price may not recover. The bulls will be happy going forward if they simply keep the SPX above 2431. Market bears got nothing unless they can create a negative cross with price down through the 200 EMA which is at 2406 and rising. If 2406-2410 fails, markets will be unraveling very quickly and collapsing lower in a panic; carnage will result. 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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