SPX 30-Minute Chart 8 MA and 34 MA Cross; Bearish Signal

The ongoing market soap opera performs a plot twist yesterday with the 8 MA stabbing down thru the 34 MA on the SPX 30-minute chart; a bearish signal for the hours and days ahead.  The bulls have been driving the bus for the last couple weeks.  Market stutter steps occurred a week ago (red and green circles) as the moving averages fought it out, but the bulls kept coming out on top. The blue rectangles show the fake out moves, the 8 MA kept teasing at failure, but recovered each time. Yesterday, however, the failure occurs at 2:00 PM EST.

The black lines show important S/R at 1226.68, 1226.63, 1424, 1422.38, 1419.04, 1417, 1415, 1413, 1410, 1406, 1403, 1399 and 1394. There was a gap fill needed at 1424-1426 from 2008. During the March and early April market rally, the SPX came up to fill that gap but fell short of the goal, leaving unfinished business.  Yesterday, the SPX climbed higher to fill that gap this time, then promptly fell on its sword, with price collapsing.  Simply watch the 8 MA and 34 MA cross, it tells you who is winning for the hours and days ahead. For now, the bears took over control late day yesterday and begins the day driving the bus, adjusting the mirrors and seat, and hoping that the gig remains in place for a while.  The bulls, however, will try to push the 8 MA higher again. The only way to revese such a steep price drop is with a steep up swing which does not appear to be on tap as the day begins.

Futures are negative as this is written about three hours in front of the opening bell. The money flow did not throw off negative divergence so this says that price will want to come back up for another look at 1425-1427, perhaps in the days ahead.  The saga continues. 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.