SPX 30-Minute Chart 8 MA and 34 MA Cross Overbot Negative Divergence Megaphone (Expansion) Pattern

The 8 MA is above the 34 MA signaling bullish markets for the hours ahead, however, the red lines show the negative divergence across all indicators desiring a spank down. The RSI has some more room above to print deeper into the overbot territory but for the most part, price is topping out in this 30-minute time frame. Interestingly, the 2-hour and 1-hour chars want to see some sideways to sideways higher action into Monday after lunch time so the weakness above may dictate the action early in the morning, then a midday recover move to play around with the 1646-1653 resistance area, then roll over for more substantive down.

The brown lines show key resistance at 1649-1650, although the technical analysis this weekend identifies the 1646-1653 area as the wider resistance battleground, and key support at 1634. The red lines over the last three weeks show a downward-sloping megaphone pattern, also called an expansion pattern. The 2-hour and 1-hour charts show the downward-sloping parallel channel and that is shown above as well but the megaphone is of interest since if price comes back under the red trend line at 1634-1638, the door to the downside, well into the 1500's, would be open. The most important thing to watch on the 30-minute is the 8 and 34 MA cross. The 8 MA is starting to roll over to the downside, a first step that is required if the bears want to fight back. The 8 MA is 1638 so if the SPX starts printing sub 1638, the bears will smile. Bulls are fine if they keep price above 1638. Projection is a few hours of sideways action through 1634-1653 and then a roll over to the downside again. 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.