SPX 30-Minute Chart 8 and 34 MA Cross Rising Wedge Negative Divergence

Here is Keystone's 8 and 34 MA cross indicator signal on the 30-minute chart. The 8 MA moved above the 34 MA on the last day of the year in 2012 to signal bullish markets for the hours and days ahead. Remember how the rumors of a fiscal cliff deal were developing last Monday after lunch?  This started the bull orgy that lasted all week long thru the New Year's celebration.  This week comes the hangover.  The red rising wedge, overbot stochastics and RSI, and negative divergence (red lines) says a smack down is on tap.  Watch for a spank down to test the 1459-1461 support. That should give way which would open the door to a downside acceleration into the low to mid 1450's and likely down to test 1444 early in the week.

The most important thing on this chart is the 8 and 34 MA cross.  Note how the 8 MA converged on the 34 MA but those bull's keep slapping the bears and are maintaining a parallel distance between these two important moving averages. The 8 MA crossing down thru the 34 MA should occur, perhaps tomorrow, and that will allow the bears to smile for a few hours or days.  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.