SPX 30-Minute Chart 8 MA and 34 MA Cross Fibonacci Retracements Overbot Negative Divergence

The move off the 1470-ish top lasted six days, dropping price to 1426-ish, about 45 handles, where positive divergence formed mid-day Friday and bounced the markets.  The 8 crossed above the 34 yesterday which says the bulls rule for the hours and days ahead.  The neon green lines for yesterday show the long and strong profiles of the indicators which say that higher highs in price are needed.  Those matching and higher highs occurred as today played out. Remember each candle is thirty minutes of trading time.

This morning's action shows negative divergence for the stochastics and ROC which created the mid-day swoon. Price shot upwards into the close ending near the high for the day with all the indicators showing negative divergence (red lines).  As tomorrow begins, watch the purple circle. If price pops, and the bulls only need to see green futures to create a multi-handle bounce, price will likely test 1457 and 1460. Note the strong congestion in this zone from Columbus Day, 10/8. If price prints in the purple circle or higher check to see if the negative divergence remains, if so, price will receive a slap down and move lower. The SPX moved straight up thru the first two Fibonacci retracements and is now hung upon the 62% Fib at 1454-ish (blue lines).  Strong SPX S/R is 1472, 1468, 1460, 1446, 1441, 1433, 1424. Markets may establish a sideways vibe into the European Summit on Thursday. Watch to see if the 8 MA curls downwards, or not. 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.