Keystone's SPX 30-Minute Chart with 8 MA and 34 MA Cross Indicator Sideways Symmetrical Triangle
More drama today as the bulls wrestled back control for the hours and days ahead with the 8 MA crossing above the 34 MA. Price is favoring sideways action forward, note the blue symmetrical triangle in play. If price breaks up and out of the top rail at 1412-ish, bulls win. If the SPX collapses out the bottom at 1408-ish, bears win. Since each candle is 30 minutes, and a session is 6 1/2 hours long, each day prints 13 candles for this chart. If you count forward, it appears that price runs out of space in the apex of the triangle so a decision must be made tomorrow which will likely determine direction for a few days. An interesting tidbit on sideways symmetrical triangles is that a fake-out move typically occurs about two-thirds of the way thru the pattern and price will typically return in side the triangle and break out the other side. Early December shows the failure out the bottom of the triangle, and then price has returned inside the triangle. The bulls would have to be given a slight advantage, but wait to see which side price exits the triangle to know for sure. The vertical side of the triangle is 20 handles, thus, if price breaks out the top, say 1412, that targets 1432, call it 1433 since that is very strong resistance. If price collapses out the bottom at 1408, that targets 1388.
The pink lines highlight important support/resistance levels at 1419, 1413, 1406, 1403, 1399 and 1391. Watch to see which side that price exits the triangle and of course, watch the 8 and 34 MA cross, see if the 8 MA starts to curl downwards to help the bears, or not. The ECB rate decision is in the morning before the opening bell. Euro up means markets up and the SPX likely busting out to the upside. Lower euro means markets will sell off and the SPX will drop out the bottom of the triangle. Draghi likely holds the fate of this chart, and the markets, in his hands. 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.
Key was answering my question while i was writing it in prior post comments Thx Key.
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Sure. Now Keystone must find the answer to the question of whether apple pie or blueberry pie is for dessert this evening.
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DeleteV. recommends AAPL pie for Thursday (after ECB interest rate decision) but watch out ... too much AAPL pie slices will turn on Friday into an awful bearish indigestion ...
For Thursday a blackberry pie (RIM stock) is likely to taste less better than the AAPL pie :) .... just for Thursday :)
V. (apprentice chef of stock pies :D )
well the apple tasted bad today, best go with the blueberry. Apple may be poisoned a bit. what are your takes on the AAPL drama today? I think we retest 520 and then move back up. Profits for the losers in at 700, buying back at 505 and now dumping to make their funds look good for end of year.
ReplyDeleteThose are great comparisons for pie flavors, the readers are always smarter. However, pumpkin pie would be a difficult one to compare to something. An under baked lemon pie would be CAT that has rolled over, a key global economic bellwether. YUM is a key proxy for China, maybe that can be compared to some burnt pumpkin pie?
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