SPX 30-Minute Chart 8 MA and 34 MA Cross

The 30-minute chart shows that the 8 MA punched up thru the 34 MA in the final hour of trading on Friday signaling bullishness for the hours and days ahead. The first half hour, and first couple hours of trading, are very important today.  The futures are up strongly and point to a test of the strong 1366-1369 resistance area.  The market bears can reverse the 8 MA back under the 34 MA to reignite the negativity but to do this, the bears need to be active in the early trading today.  The opening pop will have to be met with selling and the SPX dropping strongly within the first hour or so of trading. If the bulls can elevate the SPX at the start, and keep price at least flat to higher into lunch time, then it is highly likely the bulls will keep the markets elevated into Turkey Day.

As previously discussed this morning, the importance of the 1366-1369 resistance gauntlet cannnot be underestimated. Bulls win at 1370 and higher, bears win if the SPX stays under 1366 and drifts lower.  The histogram and stochatics want to see price sell off at the open but the futures have a different idea. The RSI above 50% is a bullish signal.  The RSI, MACD line and money flow indicators are long and strong wanting to see higher highs in price, and that will be delivered after the opening bell. Watch for the formation of negative divergence, or not, during the first two hours of trading with this 30-minute chart.

The blue lines show key S/R at 1403, 1391, 1375, 1369, 1366, 1358, 1345, 1343 and 1340. Note the sturdy sideways channel thru 1375-1391, that failed three days ago, but must be watched moving forward.  The sideways pink channel across 1348-1358 is now in play so the price move above 1358 on Friday was important and a feather in the cap of bulls. Thus, the game plan is to watch the 8 and 34 MA cross, the bulls are winning now, for the hours ahead, see if it stays that way, or not.  The 1366-1369 gauntlet is key and should hold as a resistance ceiling; we wil lfind out by lunch time. 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.