SPX 60-Minute Chart 200 EMA Cross Sideways Symmetrical Triangle

Equities move into a sideways stumble after the negative divergence, rising wedge and overbot spankdown occurs (red lines). Traders are in a holding pattern waiting for the ECB decision tomorrow morning. S&P futures are +10 about 3 hours before the opening bell so the expectation appears to be that Draghi will not cut and he may not even mention the need for a cut, despite all the talk over the last few days by ECB members and analysts that the euro is too high and a cut or more QE stimulus is needed to bring the euro lower to help the manufacturing and export sectors recover. The Jobs Report may be a non-event Friday morning due to the government shutdown that will skew numbers. GDP and Consumer Sentiment are very important but their effects may be muted as well. This leaves the ECB as the main event and the apex of the triangle would only allow today to play out before a decision needs to be made. The futures point to a breakout for the bulls to the upside.

The vertical side of the triangle is about 25 handles so a breakout above 1765 targets 1790. A collapse below 1761 targets 1736 where the gap is at. Price is on an island now above 1737 for this time frame. The daily chart shows a gap at 1730-1733. The moving averages say from 1 MA to 50 MA are all lining out sideways and the indicators are lining out sideways as well so it is a coin-flip on direction and the bulls are set to win the flip if the futures maintain the upward thrust. The RSI is sitting on the 50% bull-bear line unable to choose a side. The brown lines show the key S/R at 1775, 1772, 1769, 1763, 1759, 1752, 1745, 1733, 1730, 1722, 1706 and 1697-1698. Note that the center point of the triangle is the 1763 S/R. Price may bounce through 1759-1772 today ahead of the ECB decision where Draghi will choose the fate of global equity markets. The Fed, BOJ and ECB are the markets. As always for the 1-hour chart, watch the 200 EMA as a market signal. The SPX is above the 200 EMA which signals bullish markets for the hours and days ahead. Interestingly, the 200 EMA is converging on the gap area at 1730-1737 which creates a confluence to attract price. Bears got nothing until they can push the SPX under the 200 EMA. 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.