SPX 30-Minute Chart 8/34 MA Cross Inverted H&S

The 8 MA is above the 34 MA signaling bullish markets for the hours ahead. The 8 MA is 1655 and rising so as long as the bulls keep the SPX above and moving upwards, the relief rally will be in place. The bears need to push the SPX under 1655 to curl the 8 MA to the downside. The green lines show the positive divergence we have been watching the last few days. Price printed at or above the prior levels over the last couple days but note that the stochastics are already overbot, the histogram is negatively diverged and the money flow is unenthusiastic. The RSI and MACD line, however, want to see a bit more buoyancy in price.

If buoyancy occurs after the opening bell today, the drama will occur at the 50-day MA at 1658-1659. Bulls win above 1659.  Bears win below 1658. The 1659-ish level serves as a neck line for an inverted H&S. The head is 1643, neck 1659, which targets 1675. Using the low at 1640, and 1660-ish neck line targets 1680. There is a large gap left behind at 1680-1685. Watch for the battle at the 50-day MA today at 1658-1660 since this determines if a recovery rally is real, or not. If bulls punch up through 1660, the path to 1680-1685 begins. If 1658 holds for the bears, then markets should roll back over to the downside leading to an 8/34 negative cross. 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.