SPX 30-Minute Chart Sideways

The 30-minute chart clearly shows the sideways market movement from late last week thru the 1235-1268 range. The red lines show the negative divergence that ushered in the current sideways profile. The chart wants to see lower prices to satisfy the green circles but the green lines show a long and strong profile by ROC and RSI. Hence, more sideways.

The 8 and 34 MA cross cannot even provide a firm choice on market direction since these two are within pennies of each other. Watch this cross closely today and also the 50% levels for the RSI and stochastics, all currently bullish. Note the volume spike yesterday in relation to the buying that occurred late in the day 11/30/11 at 1247; a higher price yesterday but at lower volume particpation is not a ringing endorsement of upside strength but instead favors bearishness.

The price action overall is exactly in line with Keystone's support and resistance levels; 1268, 1261, 1260, 1258, 1257.64 starting year number, 1252, 1247, 1240 and the critical 1235 support. Watch the 200 day MA at 1264.00 and 50-week MA up at 1269.31. Hang on tight, she should break one way or the other at any time. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.

Note Added 12/8/11 at 5:05 PM:  SPX tumbled into the close today to test the critical 1235 support--and close underneath it at 1234. Watch this 1235 S/R level closely; this is a six day trend that price is threatening to break out from.