Keystone's SPX 30-Minute Chart with 8 MA and 34 MA Cross

The 30-minute, one of Keystone's Turn Signals, is providing theatrics lately. The bears were in firm control for many days then on Halloween, 10/31/12, the first day the markets reopened after Hurricane Sandy, the 8 MA moved above the 34 MA on the large positive volume push at the opening bell. The bulls were waving victory flags but alas, at noon time, the 8 MA fell back thru the 34 MA so the bears picked up the flag and starting waving it to and fro.  The bears were feeling good overnight until Thursday morning when positive earnings, and positive data from China, boosted markets with a strong rally.  The 8 jumped above the 34 and now the bulls were in full regalia, puffed chests and positive that the bottom was in. Long traders patted each other's back, one telling the other how smart they are.  You can see the red rising wedge, overbot conditions and negative divergence that created the top and the spank down.

The bulls are actually in charge right now but it appears academic since the 8 will most probably stab down thru the 34 at Monday's openign bell which would place the bears in the drivers seat for the hours and days ahead. The indicators are all weak and bleak except for stochatics which has a hint of positive divergence. Therefore, price may test the 1413 and bounce due to the stochastics, then the negativity from the other indicators would remanifest itself and pull price down to 1406 perhaps lower. The red channel is highlighted here just as the 60-minute chart showed; the top rail is 1419, middle S/R at 1413 and 1406, and lower rail at 1403. Bad things happen to the markets if 1403 fails.

The takeaway is to watch the 8 and 34 MA cross so you know who is winning. The bears should sieze control as the bell rings to start the new week of trading. 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.