SPX 30-Minute Chart 8/34 MA Cross

Wonders never cease. The bears finally create a negative 8/34 MA cross signaling bearish markets for the hours ahead. The 8 MA is 1955 and dropping sharply so as long as the SPX stays under the 1952-1955 area the bears should be fine. Price is laying around at the very strong 1951 and 1949 S/R levels. If the SPX moves higher from here a test of the 1956 level is on tap. A move lower would tease the strong support levels at 1942 and 1940.

The SPX fell yesterday as the 2-hour chart forecasted (reference yesterday's charts). Yesterday, the tweezer bottom shown above occurs late-day due the stochastics positively diverging in the oversold territory. The MACD line and ROC want to see another lower low in SPX after a bounce occurs. The green lines highlight a falling wedge, which is a bullish pattern, and note how the bottom of the pattern jives with the 1940-1942 area making this a logical place for a firm near-term bottom. The SPX may develop a sideways pattern through 1940-1956 going forward.

The projection is for a lower low than the LOD at 1947.49 due to the weak and bleak MACD line and ROC. A near-term bottom may occur at the 1940-1942 support where stocks can stabilize and recover. Bulls got nothing until they create a positive 8/34 MA cross. The bears are in charge in the very short term so watch to see if the negative 8/34 cross remains, or, like in prior times, Lucy the bull pulls the football away from Charlie Brown the bear and he falls on his keister as he tries to kick and win. 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.

Note Added 11:14 AM: The bulls waste no time running higher to test the 1956 resistance. Can the bears hold the line at 1956? TRIN is 0.90 favoring bulls but not convincingly. The bulls maintain strong copper and retail sectors smashing any bear hopes of extended downside. A developing sideways channel through 1940-1956 may develop or even a tighter 1949-1956 channel. The 1958 is further resistance above and the round number 1960 is very strong resistance which would lead to the all-time highs again if breached.

Note Added 12:19 PM: The bears hold 1956 R, so far. TRIN 0.97 moving up, call it neutral since it is close enough to one so TRIN no longer provides an advantage to bulls today. VIX is negative and under 12 so bears must reverse this to prove they mean business. Bears would need to push under SPX 1951 support to show they have oomph, this would create a 1949 failure and set the path lower. The 8/34 MA cross above remains bearish. Overall, the market bears got nothing unless they can push copper and the retail sector lower.

Note Added 12:27 PM:  The SPX is 1954.09 and the 8 MA on the 30-minute is 1953.06 and dropping. Therefore, price above the 8 MA will curl the 8 MA higher and set the bulls up for a positive 8/34 cross later today or tomorrow. The bears must send the SPX at least a couple points lower immediately, under 1953 and lower, to keep that 8 MA heading south and keep the market bears in charge. If the SPX stays above 1953 and heads higher over the next hour, the bulls are going to win today. TRIN 0.98. VIX 11.78.