SPX 60-Minute Chart 200 EMA Cross Potential Tweezer Top

The SPX is below the 200 EMA signaling bearish markets for the hours and days ahead, however, as evidenced by yesterday's action, price is back testing currently and pondering a decision to leap higher into the bull camp. Price was rejected yesterday with a tweezer top candlestick pattern occurring with the two taps on the 200 EMA. A tweezer top hints that the top is in but today's action will dictate the answer. Important resistance is 1614, 1618, 1623 and 1626-1627.

As highlighted in the daily chart, the 20-day MA, 50-day MA and the 200 EMA above at 1619.37 form a confluence of resistance at 1619-1620.  This level is for all the marbles. Bulls win above 1620. Bears win below 1619.  If the bulls run higher, watch the 1626-1627 resistance since this would be the last ditch effort to hold back the upside by bears. If 1627 gives way, the strong resistance at 1636, 1649-1650 and perhaps new highs are all on the table. The indicators created yesterday's negative divergence spank down (red lines). The 2-hour chart shows the MACD line sloping upwards so there may be another attempt at the 1619-1620 gauntlet today where the market story will be told. There is a lot on the line for bulls and bears at this 1619-1620 level, the importance cannot be understated. Watch the 200 EMA since bears remain in firm control of markets under 1619.37 but bulls take over above 1619.37. 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.