SPX 30-Minute Chart 8/34 MA Cross

The 8 MA remains below the 34 MA on the 30-minute chart signaling bearish markets for the hours ahead, however, the bulls are fighting back today. The 8 MA is curling upwards and headed for a potential positive 8/34 cross at lunchtime or in the afternoon. As long as the SPX price is above the 8 MA it will pull the 8 MA higher.

The indicators display a sideways nature (thin blue lines). Traders are looking forward to the ECB decision next week, 1/22/15. The indicators are long and strong (green lines) so higher highs are expected with price as the candlesticks print. The MACD cross is positive. Use the relationship between SPX price and the 8 MA as a heads-up for what is ahead. There should be at least two to four candlesticks needed before a top occurs which is an hour or two. Price may want to spend a lot of time staggering sideways today.

Keybot the Quant remains short. Watch XLF 24.23 and SOX 674.00 to see if the bulls can confirm more upside ahead. XLF is printing at 23.33 down on the day. SOX is flat at 662 so the bears appear in good shape. Equities weaken and roll over to the downside giving up the initial gains. Watch the 8/34 cross. Bulls got nothing until they create a positive 8/34 MA cross.

Key levels from yesterday are the 20-week MA at 2014 and the 100-day MA at 2007. The 150-day MA is 1992. The 10-month MA is a critical level for old-timer's like Keystone so watch 1982 as a key support level. Price dropped to 1988 yesterday. Extremely bad things will happen to markets if the 10-month MA at 1982 is lost. 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 9:56 AM: The bulls were charging at the opening bell full of bluster but insteasd slipped on a banana peel and fell on their sword. The 8 MA in the above chart is at 2002.14 and the SPX price is at 2002.48. So the upward move in the 8 MA will stall. Bears are in clover if they move the SPX under 2002 and heading lower. Bulls will continue to threaten a recovery if they move the SPX above 2002 and higher.

Note Added 9:59 AM: Whoopsies daisies. SPX 1999. Stocks are typically buoyant moving into a three-day holiday weekend. Markets are closed on Monday in honor of Dr Martin Luther King Jr Day. Considering the recent selling, stocks may search for a bottom today and then move higher into the weekend.

Note Added 10:04 AM: SPX is back up to 2002. The fight continues. Financials and semiconductors remain weak.

Note Added 10:45 AM: SPX recovers to the 2012-2018 range. Traders are sniffing out the pre-holiday lift and trying to guess a near-term bottom. Watch the 20-week MA at 2014 and the 100-day MA at 2007. The beat goes on.

Note Added 3:19 PM: The 8 MA remains under the 34 MA keeping the bears in charge. The 8 MA is at 1999 with less than one hour of trading remaining. So bulls need to move price above 1999 and higher while bears need to keep price under 1999 and moving lower. The SPX is at 1997. Looks like the sideways shuffle is taking place but bullishness should appear into the weekend at any time forward. The minute and hourly charts are not tipping their hands and simply hint at more sideways ahead. INTC earnings are after the bell.

Note Added 3:26 PM: The SPX prints a LOD at 1992 which is last week's low and bounced. The 1988-1992 support zone is important since it represents two days of lows. Key S/R is 2032, 2024, 2018, 2014 (20-week MA), 2011, 2007 (100-day MA), 2002-2003, 1992 (150-day MA and last week's low), 1985-1986, 1982 (10-mth MA), 1978 and 1973. Price is at 2000.

Note Added 3:38 PM: The CPC put/call is at 1.16 and with the market selling and negativity should move higher and above 1.20 will indicate that fear and panic are entering markets and a near-term bottom is at hand. That along with the bullish seasonality, and the solid selling in recent days, all point to a near-term bottom approaching perhaps into the close today or for tomorrow morning. Unfortunately, the hourly and minute charts are not tipping their hands to provide further insight.

Note Added 4:44 PM: Lo and behold, the SPX closes at the critical 1992 level. Thus, price must bounce or die from this level after tomorrow's opening bell.