SPX S&P 500 60-Minute Chart; 200 EMA Cross; Potential Island Reversal Pattern

One of Keystone's important short-term trading signals is the 200 EMA cross on the SPX 60-minute chart now at 2781 with price above at 2800 currently indicating a near-term bull market. The bears tried to create negativity earlier in the month with a failure of the 200 EMA but the bulls quickly recovered.

The SPX collapses to 2800 which is exactly where price gapped-up to a couple weeks ago. The gap is at 2795-2800. Thus, price may simply drop to fill the gap, or, price may collapse back down through the gap creating an island reversal pattern. The SPX sits on an island above 2800 after that gap-up move. S&P futures are down -13 five hours before the opening bell for the US regular Monday trading session. VIX 17.57. European trading is soggy.

President Trump is exonerated on the Russia collusion investigation as was expected. Everyone knew Trump was not colluding with the Ruskies or Putin during the 2016 election; it was simply a political game the Democrat and Republican Tribes play the last two years. The ongoing headache for Trump is that FBI Special Counsel Mueller could not reach a conclusion on the Obstruction of Justice matters.

The DOJ decides on the weekend, after looking at the materials for a day, that Obstruction cases will not be pursued. Congress and the American people will want to know the details of the Obstruction matters but the DOJ will not yet release further information. The president creates further confusion proclaiming he is completely and totally exonerated which is not correct (Trump is completely exonerated from wrongdoing with Russia collusion but not from the Obstruction of Justice issues). Thus, the drama with America's rigged crony capitalism and political systems continues.

Last evening in the States, when US futures opened after the Mueller announcement, futures popped +5 then were up +8 and more. 15 minutes into the open, however, S&P futures were back down to the flat line and slipping. From there, the futures eroded lower and remain lower overnight. Obviously, global traders are not impressed with the Mueller outcome. The Russia collusion conclusion was expected. The confusing Obstruction of Justice matters, however, create ongoing angst. Watch the 200 EMA on the SPX 60-minute at 2781 since it tells you if the bulls or bears will win for the hours and days ahead; currently the bulls are driving the bus. 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 9:38 AM EST: A few minutes into trading in the regular Monday session, beginning the new week of trading, the SPX is up 6 points at 2807. Price came down to fill that gap and print a LOD thus far at 2794, still remaining 13 points above the critical 2781. For now, the bulls are relieved, but they know the bears are likely plotting another push lower. The 20-day MA is 2799-2800 so obviously bulls win above 2800 and bears win below 2800.

Note Added 9:49 AM EST: Whoopsies, daisies. The SPX drops 10 points, -0.4%, to 2791 only 10 points from the critical 2781. Markets are nervous assessing the Mueller investigation results and thinking about the ongoing trade wars. Copper is a hair positive supporting equities.