UPS United Parcel Service Weekly Chart 20 and 50 MA Cross M Top Gaps

FDX warned on earnings a couple weeks ago which surprised markets. If packages are not shipping, then the global economy is in the tank. The FDX earnings hit this week and are a pivotal number to watch and will set the market tone for trading.  Keystone uses the 20 and 50-week MA cross as a cyclical bull versus bear market indicator.  During th esummer of 2011, the markets were falling down the rabbit hole but Operation Twist and LTRO 1 and 2 saved the day.  Note the M Top that was placed this year which is bearish moving forward. The positive divergence green lines, along with the test of critical horizontal support at 72.5 helped to bounce price last week.  The RSI, MACD line and stochastics, however, would like to see a lower low print for price and the gap at 70 is a likely target.  A gap at 65 is another downside target.  The important aspect is whether or not the 20 MA stabs down thru the 50 MA and if price heads lower it will drag the 20 MA lower. The failure would place the broad markets into a cyclical bear market so watch the 20 and 50 MA cross like a hawk. 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.