SPX 30-Minute Chart 8 and 34 MA Cross

The drama with the 8/34 cross has frustrated the bears over the last week and results in many of them throwing in the towel and giving up on trying to short this Fed and BOJ-induced stock market. Bears receive the go signal on 4/26/13 only to have the rug pulled out on 4/27/13.  Then, again, the bears start pushing south on 5/1/13, the commodities were collapsing that day, but alas, it was simple bull trickery and the markets sky rocketed after the ECB's decision hit the wires Thursday morning. The central banker decisions were viewed as all systems go and the markets went, higher. The 8 MA is above the 34 MA signaling bullish markets for the hours and days ahead.

Price is a hair under the 8 MA at 1615.40. As long as bears keep the SPX under 1615 and heading lower, this will drag the 8 MA lower and set up for a potential 8/34 cross to the downside.  The bulls simply need to keep the SPX above 1615 and there will be no fear or worry, in fact the drinking will start at lunchtime this week since central bankers will support markets forever. The brown lines show the air gap at 1598-1613 so it will be interesting to see if price respects the gap and plummets back down through, or, if price instead chooses to back fill this gap area as the new week plays out. The blue upward-sloping channel carries clout due to the high number of touches along the upper and lower rails. A price move to the upper rail at 1602-ish is a reasonable expectation. If price prints another high, watch the thin red lines since negative divergence will likely be in place that will confirm the downside moving forward. Watch the 8 and 34 MA cross to keep score at which side is winning. 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.