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

The 2-hour, 1-hour and 30-minute charts all set up with negative divergence to create today's smack down. The MACD and money flow are weak and bleak wanting to see lower lows in price. The 2-hour and 1-hour charts show weak and bleak profiles as well so market weakness should continue for several hours. The last couple hours shows a sideways consolidation vibe, so the leg down from 1557 to 1550 is 7 handles so if the second leg starts down for a bear flag pattern from 1552 that targets 1445, the top rail of the sideways blue channel. Remember on the way up 1548 is strong and key S/R so if this is pierced on the way down that is a big feather in the bears cap.

The most important thing on this chart is the 8 and 34 MA cross which dictates whether the short term move (hours and days) is bullish, or bearish. The 8 is above the 34 MA so the markets are bullish.  However, only by one point now, and note that the 8 MA is moving swiftly south and ready to stab down through the 34 MA. Watch this into the closing bell. The bulls will have to thrust markets higher immediately to stop the cross.  The bears need the SPX to drop under 1551 and lower to pull the 8 under the 34, otherwise, a sick sideways malaise will continue. Projection is for a test of the 1548 support to occur and likely failure. The 8 MA should cross under the 34 MA before the closing bell today.  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 3/12/13 at 3:39 PM:  The 8 stabbed down through the 34 MA at 3 PM signaling bearish markets ahead for the hours and days ahead. The move is only by pennies, however, and the bulls are trying to push the 8 higher already. Each time the bears have created the 8/34 cross to the downside over the last two weeks, the bulls have stopped the move lower in quick order so the next day will be important.