SPX Daily Chart Megaphone Pattern Channel

The blue megaphone pattern continues to remain in play moving forward.  Price was held at bay on the upside by the upper blue trend line.  The waterfall down move thus far in April forced price down to the center point of the megaphone before recovering over the last couple days.  Note that price now sits at the top of the downward-sloping pink channel so today we see if the top rail of this channel will spank price back down. The megaphone now targets 1290-ish as the lower target, and this number will only drop lower as time moves along.

Continue watching the 8 MA and 34 MA cross as an indicator of bullish versus bearish markets.  Keystone pointed out yesterday how the 8 MA crossed above the 34 MA. This was a tool that verified the market rally. More specifically, watch for the 8 MA to curl back down which would be the early indication of the two-day rally running out of gas. The neon green resistance channel is a bull-bear battle zone from now into early next week.  The market bears want to see price receive a smack down from the upper rail of the pink channel, or from the neon green resistance zone. The market bulls want to see price poke up thru the pink channel and then poke up thru the neon green resistance area. Both sides are assembling their soldiers and will begin the fight today.  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.