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

The SPX 30-minute chart is providing boat loads of drama this week. The bears pushed the 8 MA under the 34 MA on Tuesday morning to signal bearish markets ahead but by the end of the day the bulls recovered pushing the 8 back above the 34 to signal bullish markets for the hours and days ahead. The 8 MA started to curl over mid-day yesterday but price bounced off the bottom trend line and the thrust higher pushed the 8 MA higher as well. The sideways channel thru the strong 1468-1472 S/R levels remains in place with price closing yesterday at the top rail.  The flat trading action is a result of the lower VIX that remains under 14.

The overbot stochastics, red rising wedge and negative divergence (red lines) continue to point to the downside as the direction forward, however, note the subtle mojo with the green lines during yesterday's action. That little bit of juice may cause price to bump around in the apex of the wedge during the early trade today but the negative divergence should finally roll her over.  Of course, if there are blow-out bank earnings news, or uber strong Housing Starts numbers, price can receive a stronger boost higher. Projection is lower numbers moving forward. Watch for the 8 and 34 MA cross, if the 8 stays above the 34, the bulls will continue to rule. 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.