Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
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Wednesday, May 8, 2013
SPX 30-Minute Chart 8 and 34 MA Cross Rising Wedge Overbot Negative Divergence
The 2-hour , 1-hour and 30-minute charts have been setting up with negative divergence this week. The thin blue lines show small pull backs which only served to help develop the rising wedge. So today should allow the bears to shine. As always, the most important thing on the 30-minute is the 8 and 34 MA cross and the 8 is above the 34 since Thursday signaling bullish markets ahead. Note that any 8/34 cross to the downside is met by dip-buyers that squash the bears each time. If the SPX stays under the 8 MA at 1624.82 it will curl the 8 MA over to the downside and drag it lower for a potential cross. So keep an eye on the 8/34 cross today to see if the bears are finally allowed a time at bat, or not. 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.
KS - After a close review of volume and breadth across the sectors, I agree that a rest is due - but it's not going to be more than a few hours.
For those that can, I STRONGLY ENCOURAGE you to review DP sectors. Cyclicals have had what most would consider an initiation thrust similar to June of last year, but with the Mcsum (liquidity levels) at a FAR, FAR higher spot.
Think of a never-ending rain storm when riverbeds are dry (last year), and when they're already out of the banks (now).
KS - After a close review of volume and breadth across the sectors, I agree that a rest is due - but it's not going to be more than a few hours.
ReplyDeleteFor those that can, I STRONGLY ENCOURAGE you to review DP sectors. Cyclicals have had what most would consider an initiation thrust similar to June of last year, but with the Mcsum (liquidity levels) at a FAR, FAR higher spot.
Think of a never-ending rain storm when riverbeds are dry (last year), and when they're already out of the banks (now).
Historic.
KS, what is the real differences between RSI wider and regular RSI? Which ones is more reliable and accurate in a day trade? Thanks much
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