Keystone's SPX 60-Minute Chart with 200 EMA Cross Indicator

Here is one of Keystone's turn signal guides (reference the Turn Signal page on this site). When price is above the 200 EMA, the bulls are running, below the 200 EMA and the bears are happy. On 4/25/12 the chart confirmed another bull leg higher. On 5/4/12, however, the bears spanked price under the 200 EMA ushering in the May turmoil.  If you question the relevancy of this chart, simply look at the action at the black box. Price came up and tapped exactly on the 200 EMA before failing. The bears remain in control currently. Watch the 200 EMA at 1328 very closely today.

The three S/R lines are at 1326, 1333 and 1337 which may see a lot of action today. The positive divergence in early June bounced the SPX.  Note the action over the last few days where the indicators are all sloping drastically negatively. This profile is not negative divergence, however, since price did not make a new high simultaneously.  If price pops at the open to print 1328-ish or higher that will provide a higher high and set price up for a negative divergence smack down. 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.