SPX 30-Minute Chart 8 and 34 MA Cross Head and Shoulders Overbot Negative Divergence

The drama with the 8 and 34 MA cross is ridiculous, there is no recent memory of such shenanigans.  Six crosses have occurred over the last seven trading days, typically, perhaps one cross would occur in normal markets. It is illustrative of the markets dancing on the knife-edge even though everything looks like blue skies and apple pies. The red lines show the firm negative divergence in place which already has Monday slated for a spank down. The flat red line for price leading into Friday afternoon, that line was when price came up for a matching high about 2 PM-ish and Keystone commented on the negative divergence, and sure enough, the spank down occurred. Note the last candlestick, the long lower shadow shows the low print at 1515, when the bulls jumped in to push things higher once again into the weekend. However, the higher high in price shows the negative divergence set up for Monday.

The blue H&S was in play last week only to be quashed on Friday. But, technical analysis is a discipline of constant change, constant ebb and flow, and the brown lines already show a new H&S with the Friday action serving as Frankenstein's flat head for a top, and the left shoulder at 1514. A right shoulder would be needed this week. Projection is down after Monday's opening bell, the test of 1516 is key, failure will drop price to 1514 and then 1512. Watch to see if the 8 MA curls over to the downside. The bulls are driving the bus as long as the 8 stays above the 34. 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.