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

The saga continues. Make no mistake, the relationship of the 8 and 34 MA cross will definitely tell you market direction, however, the moving averages cannot make up their mind. The SPX is stumbling thru a sideways channel supported by 1399 below and 1406 above. A tighter range of 1400.8-ish to 1404.8-ish is also of VST interest. The indicators show a mixed bag of long and strong versus negative divergence, in other words, more indecisive sideways action. The catalyst to push the SPX out of the 1399-1406 channel may occur in three short hours, however, with the all-important Retail Sales data. The futures will immeditely react at 8:30 AM EST.

The bulls win if the 8 MA stays above the 34 MA and the bears win if the 8 MA drops back below the 34 MA. Note the eight touches over the last four days; this is very odd behavior for the 8 and 34 cross. This action verifies how the markets are in a knock-down drag-out tug-o-war right now, looking for a reason to commit to one side or the other. All you can do is watch; the 8 and 34 MA cross will provide the answer. 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.