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

This one provided drama yesterday. The last couple days another tease of the 200 EMA occurs, just like mid-month and early December. The SPX threatens to collapse thru the 200 EMA at 1418.96 but recovers allowing the market bulls to pop another wine cork and continue the rally party. There is a steep downward-sloping channel in play. The negative divergence (red lines) created the spank down and the positive divergence (green lines) created the bounce off the critical 200 EMA. The chart provides a mixed bag where both bulls and bears can make a case.  The number to watch is 1419 which is also very strong support over many months. If 1419 fails the low 1400's are coming and likely a drop thru 1400, thus, the importance of the 200 EMA cannot be understated.  Watch 1419 like a hawk today. If bullish, you are very happy if the SPX remains above 1419. If bearish, you will rule the markets for days and perhaps weeks ahead if you can push the SPX under 1419. 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.

Note Added 12/27/12 at 10:58 AM:  The SPX fell thru the 200 EMA at 1419 this morning signaling bearish markets for the hours and days ahead.

Note Added 12/28/12 at 6:20 AM:  Yesterday afternoon, the markets became excited over a possible fiscal cliff resolution coming on Sunday evening, since the House is reconvening, so the SPX catapults higher recovering from the days losses, but, as the final print is placed, the SPX is 1418.10 under the 200 EMA at 1418.44, bearish. The first close under the 200 EMA in one month. Watch this closely in the days ahead.