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

Here is another one we have watched over the last couple weeks. The bears were in control since early May. Then, starting 6/6/12, the SPX tries to punch up thru the 200 EMA to allow the bulls to run. Instead, four spank downs occur from this critical moving average but on Thursday at 3 PM, at the thick green circle, the bulls emerged victorious. With price above the 200 EMA, this will add bullish fuel to the markets. The black ascending triangle formed to allow the bounce higher. A vertical side from 1305 to 1326 is 21 points which targets 1347. But, upon closer inspection, the thin black line may be a better match from 1310 to 1326, a difference of 16, yields a target of 1342, already achieved to satisfy the ascending triangle pattern.

Note the thin red lines clearly showing negative divergence with the indicators as price moved higher.  In the VST, however, for RSI, MACD line and money flow, the momo is strong so a stutter step at this level may occur (down-up-down) to allow universal negative divergence in all time frames to appear and spank price lower.  The chart is bull-friendly with price above the 200 EMA but keep an eye on it since the negative divergence will want to spank price lower. Of course the fate of the markets will be determined by Greece this weekend.  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.