SPX 30-Minute Chart 8/34 MA Cross Bear Flag

The bears finally had a few hours to shine today. After many attempts at a negative 8/34 MA cross (pink boxes), the bears finally drove the 8 MA down through the 34 signaling bearish markets for the hours and days ahead. Look at how price hugs the 8 MA for the last three hours unable to choose a direction. Bears need to keep the SPX under the 8 MA at 1697.70 and lower to continue the market negativity. Bulls need to push price above 1697.70 and higher to pop the champagne corks. If price moves higher for Wednesday, 8/7/13, watch to see if the blue bear flag pattern plays out. Price can make an up move to 1700-1701 to finish the flag consolidation, and then the second down leg would run from 1701 to 1684. Note how 1682-1683 is strong support from one week ago so the 1682-1684 area can be considered a landing zone if price drops and falls under 1695.

The brown lines show the inverted H&S we watched on the way up with head at 1677, neck line at 1692 and target at 1707-ish which was achieved satisfying the pattern. The red rising wedge was next that created the top along with negative divergence and overbot stochastics. Wednesday is a big day. As long as the 8 MA stays under the 34 MA, the bears rule the roost. 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.