SPX S&P 500 30-Minute Chart; 8/34 MA Cross; Sideways Channel

The 8/34 MA cross on the SPX 30-minute is a very useful short-term signal. The bears turned the markets negative on the 14th which was Tuesday, however, Fed Chair Yellen arrived on Wednesday flapping her dovish wings after invoking a hawkish hike. Markets are happy there are no surprises and with at most two rate hikes on tap this year with an accommodative Fed running the show, traders are buying stocks with both hands. The SPX rockets higher for the Yellen Rally creating the positive 8/34 cross and confirming the upside party for the hours ahead. The central bankers are the market.

The SPX runs from 2357 to 2390 and now retreats to 2379 and, as fate would have it, between the 8 MA at 2380 and 34 at 2378. The hour or so ahead will tell a lot about market direction. A negative 8/34 MA cross may be on tap in about one hour or so which would be expected to flush the stock market lower. Price may want to return to that sideways triangle through 2358-2378.

By definition, to avoid the negative cross, the bulls must immediately curl the 8 MA higher up and away from the 34 MA to rally the stock market. This can only occur by price running above 2380 and higher to pull the 8 MA higher. If the SPX instead sinks lower through 2378 and lower, the negative 8/34 cross is guaranteed and bears will throw confetti. Who will win and dictate the path ahead for stocks over the coming hours? 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 12:23 PM: The SPX is at 2382 trying to breakout higher. This action will curl the 8 MA higher and punch the bears in the face. If bears want it they better step in fast and push the SPX lower, otherwise, the stock market will stage a rally into the closing bell.

Note Added 2:44 PM: The SPX is at 23824 continuing to breakout higher. The bulls have succeeded in curling the 8 MA higher. One bull steps up and puts his cigar out in the middle of a bear's forehead. The 8 MA is at 2382 so the bears need to pull the SPX price below 2382 pronto to try and curl the 8 MA downward again to set up a negative 8/34 cross. For now, the 8/34 cross remains positive with the 8 above the 34 so the market bulls dance and sing with glee.