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

The action picks up where Friday left off. Remember the hourly and minute charts setting up with negative divergence, a rising wedge and overbot stochastics? Today price receives the spanking. The 8 MA is above the 34 MA signaling bullish markets for the hours and days ahead, however, note how the 8 MA is curled to the downside and converging on the 34 MA.  As long as price stays under the 8 MA at 1501 right now, that will pull the 8 MA lower, by definition. Thus, bears can maintain a tentative smile if the SPX stays under 1501 and keeps moving lower.  Note the prior teases, however, other moves lower only to see quick reversals as the Fed pumps money into the system each weekday morning at this time.

The money flow is printing a matching low as compared to late last week so this type of behavior acts as a weight on price and wants to pull price lower. Watch to see if the RSI, stochastics, and/or money flow fall thru their 50% levels which would signal continued bearishness.  The market bears need to see the 8 under the 34 MA, otherwise, they got nothing. 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 1/28/13 at 4:45 PM:  The bulls spoiled the bears day once again keeping the 8 above the 34 and maintaining control. Tomorrow is another day. The bears plan to eat more Wheaties and give it a go again in the morning.