SPX Daily Chart Moving Average Ribbon

The SPX daily chart shows the interplay of price versus moving average levels. Three days ago the bears were punched in the face with price catapulting up through the 20 and 50-day MA's after ECB President Draghi fired the QE money bazooka. The central bankers are the market. Markets have typically rallied after the big central bank announcements but then sell off just like the current pattern. The chart maintains a sideways nature shown especially by the RSI. The FOMC announcement is tomorrow afternoon creating continued market drama. 

The chart is not tipping its hand and is open to coming back up to test 2057-2067 again. The bracket formed by the 20-day MA ceiling at 2039 and 100-day MA floor at 2010 serves as a sideways range. Ditto the sideways triangle trend lines at 2048 for a break out and 2000 for a break down. The 50-day MA is 2047. The 150-day MA is 1996 and the 200-day MA is 1992. The 150-day MA continues to slope upwards which is bullish on the intermediate and long term basis; watch this closely since if the 150-day MA line flattens and rolls over sloping downwards that guarantees a cyclical bear market going forward. Note how the 150-day MA slope failed in December but the Federal Reserve pumped the markets with Chair Yellen's dovish talk to save the day. Two weeks ago the 150-day MA was threatening to roll over again.

Markets stagger sideways like drunk in Times Square on Saturday night. Bulls win above 2039. Bears win under 2010. Price is at 2030 and rising. 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.