SPX 60-MInute Chart 200 EMA Cross H&S Patterns

The SPX fell through the 200 EMA yesterday signaling bearish markets for the hours and days ahead, however, note the previous teases. On 4/5/13 it appeared smooth sailing for bears but the markets reversed and the bulls ran higher.  Then, on Monday afternoon, this week, again the SPX collapses under the 200 EMA, but, the bulls bounce the markets and recover.  Yesterday the SPX falls through the 200 EMA again. Is the third time the charm? Price was working higher in the afternoon to come up for a back kiss. This back test will be very important today and tell a lot about market direction. The SPX will likely come up to 1557 and perform a bounce or die decision. Whichever way it decides, the broad indexes will follow.

The blue H&S played out; head at 1595, neck line at 1582, target 1567, achieved. The pink H&S needed a right shoulder, which formed over the last couple days, so this H&S is now in play. The head is 1595, neck line at 1540, target is 1485 if the 1540 ruptures. Thus, the chart establishes a key range, a ceiling at the 200 EMA at 1557, and floor at 1540 where bad things will happen. So watch the 1540-1557 range; bulls win above 1557 with a recover rally in play for the days ahead, or, bears win under 1540 which would result in the broad indexes selling off sharply. If the SPX stays inside the 1540-1557 range, price will move sideways with a downward bias. Watch the 200 EMA cross at 1557 since it will tell you the market direction forward. 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.