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

Here is one of Keystone's turn signals that flipped to the bull side in the final one-half hour of trading yesterday. The 8 MA and 34 MA cross on the 30-minute chart can be used for any ticker, index or ETF to gauge whether it is in bull or bear mode. On 6/13/12, the 8 MA crossed above the 34 MA signaling the bulls in charge. Then the bears assumed control on 6/21/12. Then, late yesterday, the bulls eeked out the advantage to begin trading today. This tool can go either way after the open today so the first hour or two of trading is important. Watch to see if the 8 stays above the 34, or, if it fails again.

The SPX has moved thru a sideways range of 1310-1320 this week. Yesterday price popped above 1320 but by the close nestled back inside this upper rail. At about 2:20 PM EST yesterday, the TICK machine exploded higher to print two uber bullish +1200 TICK's, and this corresponds to the peak in the SPX (small black circle). Therefore, this price at 1324.24 is extremely important today. The bulls will run lots higher if this level is taken out to the upside. The pink line is the critical 1326 S/R. If price moves above, the bulls are taking the markets far higher. If this 1326 ceiling remains in place, it is only a matter of time before the markets roll over and die. If 1324.24 gives way, the bulls will slice up thru 1326, thus, the 1324.00-1324.24 level takes on even more importance, especially in early trading today.

Price is also moving in an upward-sloping channel this week thus far and although price jumped above the top rail yesterday, by the close it returned into the channel. This channel serves as a sideways consolidation zone for a potential two-leg bear flag pattern off the top.  The first leg is from 1363 to 1310, a drop of 53 handles. The bear flag is the channel shown on the chart, therefore, if the second leg begins, at say, 1324, the lower target to complete the bear flag is 1324-53 = 1271. In a nutshell, watch the 8 and 34 MA cross to see if it stays bullish, or not. In addition watch 1324; the bulls will likely not look back if they poke above 1324. If the 8 MA crosses back down thru the 34 MA the markets will roll over and tumble lower. 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.