Wednesday, July 5, 2017

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

The 200 EMA cross on the SPX 60-minute is a key short-term market signal. The market bears were throwing confetti and singing songs last Thursday when the failure occurs (red circle) but the party did not last long. Price recovers  back above the 200 EMA on Friday slapping the bears in the face (green circle).

Market bears got nothing unless they can get the SPX under 2425. Price touched the lower standard deviation band so the middle band was in play and price came up to touch that middle band and then some. Price has not touched the upper band for six days so the 2444 remains on the table.

The chart indicators are stumbling sideways not providing much information. Stochastics are overbot and agreeable to a pull back. The RSI is dancing on the 50% bull-bear line in the sand and will tell you who is winning going forward.

The Keybot the Quant algorithm calls out VIX 11.57 as the key bull-bear line in the sand where market carnage would begin above. Thus, market bears win big if VIX moves above 11.57 and SPX below 2425; there will be lots of downside ahead. Bulls have no concerns at all about any market sell off as long as the VIX remains under 11.57 and the SPX above 2425. 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 9:43 PM EST: The bears flexed their muscles today. The VIX popped above 11.57 and then the SPX fell below the 200 EMA explained above. Bears were throwing confetti and singing songs but that did not last long. The central bankers maintain their jack boots on the throat of volatility. The VIX was sent lower and stocks recovered. The drama continues in the Thursday session.

Note Added Saturday, 7/8/17: The week ends with the SPX at 2425.18 and the 200 EMA on the 60-minute is.......... wait for it............ 2425.79. The market bears have a hair of an advantage over the market bulls with price under 2425.79. The bulls will rejoice if they can print above 2425.79. For the beginning of next week on 7/10/17, watch 2425.79, let's not quibble, call it 2426 as a major market direction gauge. Very simply, market bulls are in control and victorious going forward if the SPX moves above 2426 and higher. Market bears are running the show and will create serious downside in equities if the SPX remains under 2426 and heading lower.

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