Keystone's SPX 60-Minute Chart with 200 EMA Cross

The 200 EMA on the 60-minute chart is coming back into play. Price had fallen under the 200 EMA a month ago signaling bearish markets ahead. Two back tests were performed successfully by the bears (blue circles) in early November, resulting in price collapse. The SPX printed 1390 yesterday only thirteen points away from this important moving average now at 1403 (the blue line).  If you recall, 1403 is uber important S/R. Thus, a confluence is now formed at 1403 which may act as a magnet for price, and, another test to see if the bears want to stay under the 200 EMA and continue with bearish markets moving forward.  The pink downward-sloping channel was taking price wickedly lower at a fast rate; the recovery out the top rail was equally dramatic, the SPX moving from the 1343 bottom to 1390 in 16 hours; 3 points per hour.

The red lines show the negative divergence that created the afternoon spank down yesterday. Price recovered but could not print a matching high at 1390. Price will need to print over 1390 to determine if the negative divergence remains in place, or not. The histogram has already turned strongly south, however, the RSI never made it into overbot territory. The strong 1391 resistance remains key. The bulls will run upwards to test the 200 EMA at 1403 if 1391 gives way.  If price tests 1391 and the negative divergence remains in place with the indicators rolling over, then price will venture lower again.  The neon green sideways channel thru 1377-1391 may serve as a home for price moving forward. The most important thing on this chart is the 200 EMA.  Market bears remain in control of the path forward as long as the SPX stays below the 200 EMA.  If the SPX moves above the 200 EMA, the bulls will rule moving forward and 1425-1445 will become an upside target. 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.