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

The 200 EMA on the SPX 60-minute chart is a key ST (short-term) market indicator. The 200 EMA on the 60-minute is at 2654 with price at 2710 so the bulls are winning. The S&P 500 was below the 200 EMA during the Q4 crash for the most part. You see where the SPX popped above the 200 EMA at joyous Thanksgiving time but that was short-lived. Perhaps all the great turkey and fixings lulled the bulls into more complacency. Equities then fell apart in December.

The SPX moves above the 200 EMA during the second week of January which provided the all-clear signal for the long side. The bulls are steering the ship in this one-hour time frame. Bears got nothing unless they can push the SPX below 2654, if so, the bottom may fall out in the stock market. 

Note the C&H (cup and handle) in orange or inverted H&S (head and shoulders) in blue if you prefer, marking the bottom as the new year began. The head, or bottom of the cup, is at 2350 and the neckline, or brim of the cup, is at 2520-ish, so that is 170 points difference. The upside target is 2690 (2520+170) which was achieved satisfying the patterns.

Price is now hinting at a potential H&S top (purple). S&P futures are strongly higher so that right shoulder will grow a little bit higher. The H&S is in play unless the SPX moves above 2740; this breakout higher would nullify the H&S. Watch to see if the 2685-2690 neckline breaks, if so, with the head at 2740, that will target 2630-2640 which guarantees a test of the critical 2654 decider level. If 2654 fails, price will likely print the H&S lower target in very quick order and likely be falling like a rock. Bulls continue to win above 2654. There is a big gap at 2640-2652 which will need filled at some point. 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.