SPX 30-Minute Chart 8 and 34 MA Cross Sideways Symmetrical Triangle Upper Bollinger Band Violation

The sideways symmetrical triangle was yesterday's drama and the bulls won again breaking out to the upside from 1516.  The vertical side of the triangle is 15 to 20 handles so the upside targets are the previous high at 1531 resistance and also the 1534 level which represents the upper BB on the daily chart. Despite the continued beatings, the bears remain in the hunt, and the purple lines clearly show overbot conditions and negative divergence across all indicators as price makes a new high. The short green lines show the short-term momo in place after yesterday's late-day upside orgy. Remember, this is a 30-minute chart, so each candlestick is 30 minute of trading time. So short-term on this chart is two to four handles, about one or two hours, which takes the markets into lunch time today. At that time, with price higher, watch the thin brown lines for RSI, MACD and ROC. If any of these three indicators move above the thin brown line, the SPX will want to move far higher into the 1530's and 1540's. If price punches out its high this morning at 1526-1534 and the negative divergence holds, that will signal time to head lower again.

The upper Bollinger Band is violated for the last four days. This wants to see a move back to the middle BB at a minimum at 1519, as well as the lower BB at 1513. Note how when price touches the outer BB's, it always comes back to touch the 8 MA, and that is at 1520 right now. The 8 MA is above the 34 MA signaling bullish markets for the hours and days ahead, however, look at the crosses, a very rare and odd occurrence of so many crosses in such a short time. This behavior illustrates how erratic and unstable the markets currently are, perhaps waiting for a catalyst to help it firmly commit to a solid direction. The SPX has moved through the 1490-1525 range for 8 or 9 days. Projection is a move to 1531 resistance and perhaps 1534, then a spank down with price moving lower once again. Today's high may occur in the late morning or around lunch time. 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.