SPX 30-Minute Chart 8/34 MA Cross Overbot Rising Wedge Negative Divergence

The green circle shows the positive 8/34 MA cross the exact point where the bulls punched the bears in the face; that was Fed decision day, Wednesday, 12/17/14. The central bankers are the market; it is absolutely shameful but this is the modern day world the Federal Reserve has created. The 8 MA is above the 34 MA signaling bullish markets for the hours ahead, however, the neggie d (red lines), rising wedge and overbot stochastics are creating an initial spank down move. If price stays under the 8 MA it will curl the 8 MA downwards creating a potential negative 8/34 MA cross. Bears got nothing until they receive the negative 8/34 cross. Watch to see if the RSI and money flow print lower lows (thin purple lines) which will signal continued weakness.

The strongest S/R in this 100-point range is 2093, 2089, 2075-2076, 2067, 2061, 2040, 2032 and 2002-2003. The 20-day MA is 2051.58 and rising and needs back tested. The SPX began December at 2067 so there may be price excitement on tap at this level as the year closes out. The projection is down and the negative 8/34 MA cross should develop. The 2075-2076 support is a reasonable initial downside target.

The central bankers rule the market and the push higher last Friday was in part due to traders sniffing out more Japan stimulus which occurs to the tune of $29 billion this weekend. Thus, the bulls may be able to push stocks higher on the easy money joy. Prior articles explain the ongoing global central banker collusion that has created the rallies off the October low and the current 7-day rally. (Type 'collusion' in the search box at the right for further study.) The central bankers are coordinating efforts to supply a steady pump to stock markets. The ECB meeting is 1/22/15 and the FOMC meeting announcement is 1/28/15 so the plan for the central bankers is to try and goose stocks in a coordinated manner to get to late January.

The BOE is due for some lip service to pump markets and Fed members will keep inserting dovish comments. The PBOC announces  a relaxation on banking regulations, a form of stimulus, which helped goose stocks late last week, however, the move may actually delay further triple R cuts for Chinese banks. The markets moving into 2015 are at the beckon call of the global central bankers. For Monday, if the Japan stimulus is priced in, then the technicals in the SPX charts shown this weekend should kick in to send stocks lower. The Japan stimulus may have been timed to boost the Santa Claus rally expectations and keep stocks sideways to sideways higher into the New Year. The S&P futures and Asian trading overnight and early Monday will identify the effects of the Japan stimulus. 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.