SPX 30-Minute Chart 8 MA and 34 MA Cross

The 8 MA stabbed down thru the 34 MA in front of yesterday's close signaling the all-clear for market bears.  However, the rupture is only eleven pennies underneath so far so the bears need to place some downside distance in a hurry.  Alas, the futures show a bounce of two to six points on tap for the bulls for the SPX so that targets 1431 and/or 1435 after the opening bell.  The sharp downward nature of the 8 MA can only be reversed with a sharp upward price move at the open and the bulls are trying to set this up pre-market.

The red lines show the negative divergence spank down off the top that started with the new week of trading yesterday.  During yesterday's action note the weak and bleak profile shown by the red lines for the indicators, except stochastics. The stoch's are already oversold and looking for a bounce move, but the other indicators want to see a lower low in price printed after the bounce occurs. Thus, perhaps an early day bounce to 1331 or 1335, then the downside should begin again to test 1429, 1427, 1424, perhaps lower.  SPX S/R, shown by the thin black lines is 1440, 1438, 1435, 1431, 1429, 1427, 1424, 1422, 1419, 1413, 1410, 1406, 1403, 1399 and 1394. The 20-day MA is important, now at 1412.45. Simply watch the 8 and 34 MA cross, if the 8 stays under the 34, the bears rule moving forward for the hours and days ahead, if the 8 pokes back above the 34 MA, the bulls rule going forward. 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.