SPX 30-Minute Chart 8 and 34 MA Cross Expansion Channel
The 8 MA crossed above the 34 MA to signal bullish markets for the hours and days ahead. The flip flops for this 8/34 MA are ridiculous at this point, and they are getting old. The 8 and 34 MA cross should occur about once every few days time. In the last nine days, the 8/34 cross has occurred nine times. This behavior is testimony to the special nature of markets currently. These are not your Grandfather's markets. Negative divergence cannot exist as yet since the SPX did not print a higher high as compared to three days ago but the indicators show a lack of interest as the final hour or two played out today (red lines).
The 1520 and 1524 are key resistance levels, the 1520 held today. If price moves down from here the blue expansion pattern would remain in play with price potentially heading for the lower blue rail in the 1460's or 1470's. For these markets, you never know what you will get one day to the next now. The projection would be a roll over from 1520 or 1524. 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.
if price doesn't go below 1500-1498 it sure looks like an inverted head and shoulders, the right shoulder being still expected. this view should be in line with a 5th wave still to come after this 4th corrective wave (from 1531 till present levels) displayed as it did.
ReplyDeleteTarget of potential (!) IH&S - 1555 - 1558.
V.
Yep, that can certainly be the case, however, Keystone steers away from using inverted H&S's when a ticker or stock is at its highs, it always seems best to look for H&S's after long rallies. Conversely, the inverted H&S's are most useful after a stock or index is beaten for a long time and bottoms,as many of Keystone's knife-catches show that are highlighted here often. Also, the overbot conditions are of interest since inverted H&S's are more useful when all the indicators are under the 50% level, that way when the inverted H&S forms, you can see plenty of bull fuel upside ahead as the indicators will climb as price breaks out higher. In other words, it has room to run. That does not appear to be the case, but in trading anything can happen, so it is certainly worth watching.
ReplyDeleteactively pursuing short strategies - expecting a false break up as in effect to permit the unwinding of much larger positions as we have seen before in years past a rolling top...
ReplyDelete