SPX 30-Minute Chart 8/34 MA Cross Downward-Sloping Channels

The 8 MA moves above the 34 MA on the 30-minute signaling bullish markets for the hours ahead, however, the 8 MA is moving sideways only marginally above the 34 MA showing that the bulls and bears continue to fight. The 8 MA will curl down wards for a potential negative cross as long as the price stays under 1978 and moves lower. The SPX is below the 200 EMA on the 60-minute chart at 1986.64 signaling bearish markets for the hours and days ahead. Either the 30-minute chart above or the 60-minute chart will flinch to confirm the market direction forward. The 1985-1988 resistance level is a formidable gauntlet and a very important bull-bear battleground area.

The indicators above are moving sideways. Watch the 50% levels for RSI and stochastics to see if price is leaning bullish or bearish (both are currently sub 50% preferring to see further weakness ahead). The downward-sloping red channels are in play. The SPX S/R highlighted this morning in the previous missive are 1985-1986, 1976.72 (50-day MA), 1973, 1966 (last week's lows), 1963 and 1960-1961. Price bounced from the LOD at 1964. Watch the 8/34 cross to see who wins 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.

Note Added 11:13 AM: The SPX is fighting along the 50-day MA at 1976.72 and must make a bounce or die decision. If price overcomes the 50-day MA a move to test the strong overhead resistance at 1985-1986 is likely on tap.

Note Added 11:16 AM: Bounce. The SPX pierces up through the 50-day MA; see if it can hold above for 7 to 10 minutes, if so, then price will likely settle in sideways today and float towards the 1985-1986 resistance. Bears need to spank price back under the 50-day MA immediately.

Note Added 11:26 AM: SPX 1979. Dollar/yen 109.36. The battle continues. Bulls win above the strong 1985-1988 resistance. Bears win under the 50-day MA support at 1977. Price bumped its head up against the upper red trend line at 1979-1980 printing the HOD at 1979.95. Bulls and bears are both drama queens as the market theatrics continue.

Note Added 11:28 AM: BPSPX loses the 70% level to 69 for a double whammy sell signal. Scroll back to the BPSPX chart several days ago or type 'BPSPX' in the search box at the fight to bring up the prior charts for further study. Bad things will happen to the equity markets including another strong leg lower if BPSPX stays under 70.

Note Added 6:24 AM on Tuesday, 9/30/14: The BPSPX ends at 68.80 a very negative market signal. The bears receive the market sell signal reversing the BPSPX by six percentage-points at the end of July so you knew market weakness was on tap. Yesterday the 70% level is lost which creates a double whammy sell signal. Markets will tumble down the rabbit hole here forward--as long as the BPSPX remains under 70. Watch BPSPX closely the remainder of the week since it tells you the market answer moving forward. The SPX ends yesterday at 1977-1978, at the 50-day MA, so the bears threatened to create a flush lower but did not have the juice. S&P futures are +7 before the Tuesday opening bell. Watch the 50-day MA at 1976.75. Bulls must push BPSPX above 70 or they will fall down the stairs. The 8 MA remains above the 34 MA on the 30-minute chart signaling bullish markets for the hours ahead. The SPX is under the 200 EMA on the 60-minute chart at 1986.16 signaling bearish markets for the hours and days ahead. One of these is wrong and one will flinch providing the market answer ahead. Watch the 1986.16 level like a hawk; bulls win above 1986; bears win below 1986.