SPX 30-Minute Chart 8/34 MA Cross Potential Island Reversal

The 8 MA drops under the 34 MA on the SPX 30-minute chart signaling bearish markets for the hours ahead. The pink boxes show the dashed hopes of the bears as the stock market rallies higher. The 8 MA dipped down for a potential negative cross late in the day on 10/22/14 but the bulls slapped the bears in the face and sent the SPX higher refusing to allow the negative cross. Then the bears tried to create the negative 8/34 cross on 10/27/14 but the bulls punch the bears in the face again and ask them if they want more? You like it so much you want some more? Well, the bears wanted more pain since they tried to create the negative cross the day before Halloween (10/30/14) but the bulls slapped them around some more. The BOJ joins in beating the bears with a baseball bat after the QE money bazooka was fired. The bears did not give up and now have finally created the negative 8/34 cross to receive some market weakness ahead.

The bulls keep beating the bears since rich Uncle Sam the central banker man, keeps handing the bulls money to buy baseball bats. Watch the 8 MA at 2009. The bulls are pushing the SPX higher above the 8 MA so this will curl the 8 MA higher and set up a potential positive 8/34 cross to continue the bull party. The bears need to get price under 2009 as soon as possible and keep it under there and heading lower or they got nothing.

The chart shows a closer-up view of the potential island reversal pattern with the gap at 1999.50-2001.50. Price bounced off the top of the gap a couple hours ago and stays above the top brown line on the island. When price comes back down it will immediately collapse to 1999 and lower creating an island reversal, or, simply leak down into the gap filling the gap not creating an island reversal. The RSI sits at 50% dead neutral between bulls and bears. As RSI goes, so goes price. 

The bears have the edge in this short 30-minute time frame. If the 2-hour chart had such clear neggie d as shown above (red lines) the top would be an easy call on the 2-hour as it is for the chart above. Price may simply stagger sideways until the election results are known this evening and tomorrow. The 8 MA is below the 34 MA so the bears are in charge. 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 1:16 PM: The SPX is 2009.90. The 8 MA on the 30-minute chart is 2008.23. So bears need to move price under 2008 as soon as possible and keep it moving lower if they mean business. If price stays at 2009 and floats higher, the bears are running out of gas and may fold like a cheap suit. If bears move the SPX under 2008 they will likely try for another test of the top of the gap at 2001-2002.

Note Added 1:21 PM: Price is dropping quick with SPX now at 2007.45.... 2007.35..., so the bears are hinting that they mean business. The 8 MA is 2007.97 and SPX price is 2007.79. Use the 2008 level as a guide. Bulls rule the rest of the day above 2008. Bears rule under 2008. As long as the negative 8/34 cross remains, bears rule for the hours ahead.

Note Added 2:01 PM: The SPX is up to 2013 receiving lift in the afternoon.