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

The SPX dropped under the 200 EMA at 1405.26 yesterday causing bears to celebrate with confetti but the fun ended quickly as the markets reversed at 1398 and launched higher towards 1416 intraday. Thus, the bulls took over control of the markets for the hours and days ahead on 11/28/12 when the SPX pierced up thru the 200 EMA and continue to drive the bus.  If the 1405.26 fails today, it is a big deal and a very bearish market signal. If price stays above the 200 EMA, the market bulls have no worries, they will be looking forward to a relaxing weekend ahead.

Note the sideways symmetrical triangle reinforcing the pattern explained last evening for the 30-minute chart. Bulls win with a punch up thru the top rail of the triangle at 1408-1410 while bears win with a collapse out the bottom rail at 1403. The price action has a healthy upward-sloping channel trend in place so a rupture of 1403 would ruin this bullish fun. The indicators also show the sideways nature of price right now which will result in one side or the other taking charge at any time forward. The 1399-1419 sideways channel offers price a direction forward.

The most important thing to watch is if the SPX can stay bullish above the 200 EMA, or not. If price falls thru 1405.26, the bears will throw confetti, pour booze into the punch bowl and search for lamp shades for their heads this afternoon since they will retake market control. 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.