SPX 30-Minute Chart 8 MA and 34 MA Cross

The 8 MA is above the 34 MA on the 30-minute chart signaling bullish markets for the hours and days ahead reversing the bear move that started about one week ago.  The bears would need a sharp drop lower at the opening bell to start the week to reverse the 8/34 cross but this is not on tap. The S&P futures point to a gain of about five to ten points at the open. Key price resistance levels above are 1555.69 (200 EMA on 60-min), 1561, 1564.06 (20-day MA), 1565, 1569, 1575-1576, 1589 (last week's high), 1593 and 1597.  The falling green wedge and positive divergence created the Friday launch and started the recovery rally.

Watch to see if a rising wedge develops as the day plays out. Stochastics and money flow are already overbot and the MACD histogram is negatively diverged so the move up is not anticipated to be that strong. The 1565 resistance is strong, if that gives way, 1569 is next then 1575-1576. Projection is for a move higher to 1561 and/or 1565 resistance and then weakness should reappear. Markets have an upward bias until the 8 MA falls under the 34 MA. Watch for initial signs of the 8 MA curling over to the downside as the day plays out. This signal is regularly updated on the Short-Term Signals page. 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.