SPX 30-Minute Chart 8/34 MA Cross

The 8 MA punches above the 34 MA to signal bullish markets for the hours ahead, however, the 8 MA is already starting to curl back over to the downside and the S&P futures are -6 about four hours before the opening bell. The 8 MA is 1656 so as long as the bears keep price under this level and heading lower, a negative 8/34 cross should reoccur. The positive 8/34 cross yesterday reverses the five day slide for equities. The green lines show the positive divergence that developed on the hourly and minute charts to bounce price off the 1646-ish level. The thin blue lines show a potential bull flag that would send price up to 1664-1666 but the futures are pointing to a lower start.

The red lines for the indicators for yesterday are very unenthusiastic. Price kept testing the 1658-1659 level but the indicators ran out of gas, the RSI dropped back under the 50% level into bear territory. The 1685 level held as strong support one week ago with price testing time and time again, until the floor finally gave way and price fell through. That is a big gap at 1680-1685 that will probably need filled at some point forward and the 1685 level, now resistance, should be back tested out of respect. Watch the 8/34 cross. The bulls are in control but they will likely be tested early in the trading day. 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.