SPX 30-Minute Chart with 8 MA and 34 MA Cross

This chart is one of Keystone's faves to watch and here's one that the bulls can parade around the office. A big change occurred today. On Friday the 11th, six trading days ago, the 8 MA stabbed down thru the 34 MA sealing the markets fate. Markets tumbled lower until today and now the 8 MA pushed back up thru the 34 MA signaling that the bulls are regaining strength and that the selling is off the table for now. Note the green falling wedge and positive divergence that identified the bottom as the opening bell rang this morning.

Price closed above the 150-day MA, not shown on this chart, look at a daily chart, at 1314-ish. SPX 1316, 1318 and 1326 is very important and strong resistance.  SPX closed at 1316. During this afternoon, remember each candle represents 30 minutes of trading time, price is moving higher with all the indicators long and strong as well except for the histogram that already wants to see price fade and drop. Therefore, one projection would be a move to 1318 tomorrow then perhaps negative divergence would be in place to move price lower again. Simply watch the 8 and 34 MA cross to note the winner and loser each day.

Also of interest is that for this morning's bottom, the MACD line made a slightly lower low and was not agreeable to seeing price bounce higher. This hints that price will want to come back down to take another look at that 1292-1298 area. For now, for this tool, the bulls are happy, at least thru the first couple hours tomorrow, but after four new candles print a new path can be forecasted. A price move up thru 1318 will likely lead to 1326. 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.