SPX 30-Minute Chart 8/34 MA Cross New All-Time Record High

The bulls are running again with the SPX printing a new all-time record intraday high at 2006.12. The dollar/yen prints above 105 so the weaker yen helps send stocks higher. Banzai! The 8 MA remains above the 34 MA signaling bullish markets for the hours ahead. The 8 MA continues higher so the bears need the SPX at least under 2001 and lower to curl the 8 MA downwards. Bears got nothing until they receive the negative 8/34 cross. The red lines show universal negative divergence across all indicators as well as overbot stochastics that want a spank down, however, in the VST (the last couple hours and day) the bulls are long and strong with RSI, MACD line and money flow so another higher high will be needed after a candlestick or two print lower with a pullback.

Price has pierced the upper standard deviation band so a move back to the middle band at 2000 and even the important 1995 level is on the table. Key S/R is 2006, 2005, 2003, 2000 and 1991. The expectation would be for price to roll over in about 2 to 4 candlesticks which is about 1 to 2 hours of trading time. Let's say this afternoon.

Keybot the Quant remains long but will flip short if the SPX drops under 1995 and stays under. Volatility spiked higher today causing the initial market weakness and will continue to create market weakness if VIX remains above 12.44. Alas, for bears, as this message is typed, the VIX is now under 12.44 back in bull territory which will create market lift and the major indexes are all now positive. Use VIX 12.44 as the main rudder for the market directional ship today. Bears need both the VIX above 12.44 and SPX under 1995 for Keybot to flip short. Bulls will send equities higher, as they are now, if VIX is under 12.44. The bull juice just created with lower volatilty should help carry the SPX price to the top after lunch as described above. Perhaps the VIX will move back above 12.44 this afternoon and that will tell you the near term top is in for the SPX. 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 on 9/3/14 at 8:18 AM: The 8 MA is below the 34 MA signaling bearish markets for the hours ahead, however, as always is the case, the opening bell the following day, today, may reverse the move, and news of a Ukraine cease-fire launches global markets higher. The 8 MA is already curling higher at the end of yesterday's session. Thus, the 8 MA should cross above the 34 MA placing bulls back in charge. The chart will need to reset since the new news must be priced in. Watch copper and volatility in the Wednesday trade; JJC 38.71 and VIX 12.45. Bulls win with JJC above 38.71. Bears win with VIX above 12.45. If status quo remains with weak copper, that is trading negatively currently, and low volatility, markets will trade sideways with an upward bias. Wednesday may be more sideways than anything since the real circus begins tomorrow morning with the ECB rate decision and press conference that will send global markets wildly one way or the other.