SPX 30-Minute Chart 8/34 MA Cross Downward-Sloping Channel H&S Pattern Gap

The 8 MA is under the 34 MA signaling bearish markets for the hours ahead, however, high drama played out yesterday afternoon. The bulls were ready to thrust the 8 above the 34 to signal victory ahead in the final hour yesterday but the bears flushed the SPX to the downside and curled the 8 MA lower again. The opening bell is critical today since the bulls need to show up with a gap-up open or at least a strong open to send the 8 MA higher and reverse the market negativity. Otherwise, the bears will press lower with the negative 8/34 cross continuing. The chart is not tipping its hand moving forward but is leaning to the bear side. The downward-sloping channel is in play with price rejected at the top rail yesterday early afternoon. The lower rail of the channel intersects the important 1691 support level, which is also at the 1688-1691 gap fill. The 1692 level is last week's low so this confluence at 1691-1692 may act as a magnet to pull price lower for a test. An island reversal pattern occurs if price moves lower to 1691 then collapses to 1688 back down through the gap. Price may also choose to simply leak lower and fill the 1688-1691 gap.

The dark green lines show an H&S in play with a head at 1730, neck at 1697, and target at 1664 if the 1697 neck line fails. The stochastics are slipping under 50% into bear territory. Projection is for price to continue moving through the brown channel with a downward bias. Bulls got nothing unless they can create a positive 8/34 cross. Bears remain in control of the markets in the near-term (hours) as long as the 8 stays under the 34. 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.