SPX 30-Minute Chart Downward-Sloping Channel Sideways Symmetrical Triangle Gap 8 MA and 34 MA Cross

Lots of spaghetti on this chart. Starting with the 8 MA and 34 MA crosses, the bear move started on Tuesday, 4/3/12, then the bull recovery last Thursday, 4/12/12, then the 8 MA fell back under the 34 MA to signal the bears in control again, and remains under favoring bears. The 8 MA is curling up slightly, however, and with the S&P futures currently up, watch to see if the 8 MA moves back above the 34 MA in morning trading, or not.

The red falling wedge, oversold conditions and positive divergence with the RSI, stochastics and MACD histogram bounced price last Wednedsay. Note that the MACD line and money flow (red circles) want to see a lower low in price still yet under 1360. The teal lines show the downward-sloping channel now in progress, price should pop above that thin teal line that marks the top of the channel if the futures stay buoyant. If so, watch the neon green resistance levels on the way up, including a gap fill at 1379.

The purple lines show the sideways symmetrical triangle in play now as well. The last four days show traders very bearish, then a bounce, then a little less bearish down to the bottom of the triangle, then back up to the top of the triangle but a little less bullish and now price is moving out to the apex and will have to decide on a direction, probably when the Spain 10-year auctions occur Thursday morning only 48 hours away. The purple sideways triangle shows a vertical side of about 30 points. Thus, as price decides to either breakout or down out of the triangle, the upside target (if good auctions occur) would be the 1400 resistance level. If price collapses out of the triangle (bad auctions) the 1340 level is targeted which is the lower rail of the teal channel.

Over the last day, the RSI, MACD and stochastics indicators are leaning bullish while the money flow is leaning bearish. The indicators are under the 50% levels which is bearish, see if any of these pop above 50% today. SPX should make a big decision over the next couple days, either back up to 1400, or failure to 1340, use the 8 MA and 34 MA as a guide. 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.