SPX 30-Minute Chart 8 MA and 34 MA Cross Overbot Rising Wedges Negative Divergence
We have been watching these continual overbot-rising wedge-negative divergence set-ups smack price lower but the bulls keep coming into markets buying with both hands. The 8 is above the 34 MA signaling bullish times ahead, however, the chart is set up with negative divergence once again. The bulls appear possessed not willing to give up any ground and only interested in a solid up market. The bears got nothing unless they can move the 8 MA lower to stab down thru the 34 MA. That would begin if price can move under the 8 MA at 1507.40 to cause it to curl over to the downside. Price is now printing over 1509; the bears needed to eat more Wheaties this morning. The Fed is on tap this afternoon so markets may meander sideways until the announcement. 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 1/30/13 at 4:01 PM: The bears pushed all day long but fell a hair short of pushing the 8 MA under the 34 MA. The 8 and 34 MA cross is immensely important when the opening bell rings tomorrow. The SPX finished today with a 1501 handle dropping six points.
http://charts.stocktwits.net/production/original_11782673.png?1359562887
ReplyDeleteVery interesting chart. The move down to punch down thru the lower BB is likely 30 to 50 SPX handles lower.
DeleteIs this chart predicting a bit of a market selloff that would take the NYMO down from last night's close of 18.35 to about minus 10? To be followed by a large move up in the indexes and in the NYMO, taking it back above 50? The BBs do seem to be squeezing together. Thanks MCAP.
ReplyDeleteNYMO respects the 200-day MA which is now at +4 so perhaps initial move down to 4 for NYMO, then a small bounce, then much lower into the negative numbers. The big move may coincide with the Fed shortly. Pull back may mimic the late December pull back. If so, the lower BB will drop quickly extending the lower target.
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