SPX S&P 500 60-Minute Chart 200 EMA Cross

The SPX is below the 200 EMA on the SPX 60-minute chart at 2107 signaling bearish markets for the hours and days ahead, however, the move lower is not yet convincing. As highlighted in the previous message, several moving averages and the June starting number all converge at 2095-2108. The importance of this range cannot be understated. Bulls need to push above 2107-2108 to reassert their dominance and send stocks strongly higher. If so, the SPX would move above the 200 EMA signaling bullish markets ahead.

The bears must keep the SPX under 2107-2108 with all their might. As long as they do they are fine and markets will weaken and slip away to the downside. Under 2095 and stocks will collapse strongly lower immediately to 2091 then to 2086. It is reasonable to expect a back kiss of the 200 EMA although a successful back test has already occurred three days after price fell through the 200 EMA. June began at 2107 so there may be a push higher to challenge this area as the month ends on Tuesday and 2107 determines an up or down month.

Bears are fine and in charge under 2107-2108. The bulls will take over above 2107-2108. 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.