Keystone's 60-Minute Chart with 200 EMA Cross Indicator Inverted H&S Pattern

The 8 MA stabbed down thru the 34 MA on the 30-minute chart yesterday which signals bearish markets for the hours and days ahead. That signal is a kissin' cousin to the 60-minute 200 EMA cross so the bears need to see the SPX drop under 1411.15 to throw confetti and begin a drinking binge. The bulls rule above 1411.15. The one-hour chart shows an interesting sideways channel (blue lines) which encompasses a lot of the price moves thru 1403-1433, so the price move out of this range is important.

The green falling wedge and positive divergence created the mid-November bottom and bounce.  The rising wedge (pink lines) and negative divergence (red lines)  created the spank down as was pointed out as it occurred this week. Note that price fell thru the lower trend line of the rising wedge. The upward-sloping channel (black lines) continue to hold price. The lower trend line for this channel is at 1413 so, along with the 200 EMA, form a confluence at 1411-1413 which now elevates the importance of this bull-bear line in the sand.

Another interesting pattern on this chart is the brown inverted head and shoulders. The head is the bottom at 1345-ish. The neckline is 1390, thus, a 45-point difference, so the target is 1435, bingo, that hit a day ago so the inverted H&S pattern is now satisfied. Interestingly, the spank down occurred once this H&S played out. Even if price bounces from the critical 1411-1413, note how the indicators remain weak and bleak with equal, or in the case of the histogram, negatively sloped leanings. This acts as a weight on price since price is no where near the early December low for such weak indicators. Considering that the 30-minute 8 and 34 MA cross resulted in a bearish signal yesterday, the current projection would be that the SPX should drop thru the 200 EMA over the next few days. If price fails thru the 200 EMA, lots of trouble is ahead for markets. If the SPX stays above 1411, the bulls are happy and do not have a care in the world. 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.