SPX 30-Minute Chart Potential Ascending Triangle

Note the red ascending triangle pattern in progress with base line across 1282-ish and vertical side of about 22 points. Thus, if price breaks up thru the 1282-1283 resistance area, the target is 1282+22 = 1304. But hold your horses. Note how the price peaks over the last couple days favor the downward-sloping thin black line more rather than the horizontal red line of the triangle. Also, the indicators in the lower part of the chart are all providing a sideways triangle vibe which further questions the viability of the ascending triangle.

Note how price closed smack dab on top of the upward-sloping lower trend line. Price touched the lower rail after the open this morning as well. Lots of drama continues for Monday's action. Watch the 8 MA to see if it falls thru the 34 MA which would be very bearish; today the cross was saved by the bell. Watch the 50% levels for RSI, stochastics and the zero line for ROC. The behavior in relation to these centerponts will immediately indicate the preference for bull or bear.

SPX could not hold the critical 12-month MA (look at a monthly chart) at about 1280.27, this is a big feather in the market bears cap. Price will either break thru the lower rail at 1277 and collapse, or break up thru that thin black overhead line repressenting top trend line resistance, which also happens to be the same level as the 12-month MA at 1280.27-ish, and catapult towards 1300. The winner is likely determined by the price move either below 1277 or above 1280. There is only space for about four or five candles to finish the triangle, which represents about 2 or 3 hours of time, thus, Monday is a big decision day, simply follow these tools to determine the early scoop on broad market direction. If a direction had to be projected at this juncture, the bears would be favored with failure occurring at 1277-1278. The 8 and 34 MA cross is 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.