SPX 30-Minute Chart 8 and 34 MA Cross Sideways Symmetrical Triangle

The 8 MA is above the 34 MA so the bulls start with the advantage as the new week begins. The blue lines correspond to the SPX S/R levels listed in an earlier post.  The pink channel thru 1330-1350 is favored for the last few days so any move out of this range is important and would verify the favored direction. The price action is squeezing into an apex of a sideways symmetrical triangle.  Look at the indicators squeezing in.  A big decision is about to occur on Monday morning.  A drop under 1440 is a collapse out the bottom of the triangle while a move above 1442 shows a breakout above the triangle.  The potential move can be as much as 35 handles as shown by the vertical black line. This would either send price back to the highs on 9/14/12 or, to the uber strong support levels at 1403-1406. Since the price is all the way into the apex, the move may be weaker, so using the 1431 low, that would project a move of about 20 or 25 handles that would take price either higher to 1460-1465, or, down to 1419.

There is a beautiful symmetry with the price action currently, equally balanced within the support and resistance zones, delicately balanced on the 20-day MA, she will break tomorrow morning and one side will win and the other side lose. To determine the winner, watch to see if price moves above 1442 which is bull friendly (which is above the 20-day MA) breaking up and out of the triangle. Under 1440 is bear friendly since this is a collapse out the bottom of the triangle and keeps price under the 20-day MA.  Watch the RSI shown above, over 50% and bulls celebrate, under and the bears will throw confetti.  The strong 1447 R is very important for Monday. The price move from the pink channel either above 1450, or below 1430 will verify the winner. Of course watch the 8 and 34 MA cross since this will tell you who is winning for the hours and days ahead.  Monday morning should be eventful. 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.