SPX 60-Minute Chart 200 EMA Cross Tweezer Top

You know the drill with this important market metric by now. The SPX is above the 200 EMA on the 60-minute at 1862.31 signaling bullish markets for the hours and days ahead, however, price is only a hair away from failing. Bears need to push under 1862.31, and remain under, or they got nothing. The indicators are all negatively sloped showing weak and bleak behavior so lower lows in price are expected even after any bounce occurs. The 2-hour, 1-hour above and 30-minute charts all exhibit the same weakness. On Friday, the 2-hour chart negative divergence created the spank down so scroll back to that chart for further study.

The bears get slapped in the face time and time again as the red and green circles show. Market bears are never allowed to shine but markets always revert to the mean; the question is only the timing. Perhaps this time the bears will plot a more sustainable downside move once the 200 EMA fails, or will they?

From one to four 1-hour and 2-hour candlesticks are likely needed before the bulls can create a recovery move so that places markets into this afternoon or tomorrow. Thus, if equities bounce mid-morning, as typically happens much of the time due to Fed easy money printing, the SPX will likely re-weweaken and print lower lows at least into the mid to late afternoon. The stochastics are oversold and will positively diverge likely creating a bounce shortly after the opening bell. The Tweezer Top (blue circle) pattern printed identifying the top in this time frame. Look for a potential tweezer bottom moving forward like late March. Watch the 200 EMA cross since it provides the market direction answer going forward. 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.