SPX S&P 500 30-Minute Chart with 8/34 MA Cross

President Trump pumps the stock market higher today with positive comments about the US-China trade talks. Yesterday, Soybean Donny said the trade deal would not occur until after the November 2020 election sending stocks lower but today he got up on the other side of the bed and King Donny proclaims that a trade deal is imminent so stocks rally higher. What a joke it all is. The charts need a few hours to price-in the whipsaw action due to Soybean Donny's comments.

Volatility was jammed lower early this morning as well as copper jammed over +1% higher. The price action is the opposite of yesterday when the higher volatility and weaker copper paved the way for market carnage. Today it is bullish market glory.

The 8 MA pierces up through the 34 MA on the SPX 30-minute chart at noon today so the bulls cheer. King Donny saved the day but no one was worried anyway because Pope Powell is standing at the ready, willing to bless markets with more easy money in the event of any downturn. The financial system has become a caricature of itself.

Keybot the Quant is back on the long side after the bulls sent volatility lower and copper and commodities higher, it was a trifecta of bullish joy that creates the upside orgy. These three parameters will have to weaken for the bears to growl again. Watch copper and volatility closely; they tell you which direction the stock market is moving. As copper goes, so goes the market. Copper jumps +1.3% today. The VIX moves inversely to the SPX. VIX is at 14.43. Keybot identifies VIX 15.11 as the critical bull-bear line in the sand so the bulls are winning.

The bulls will float stocks higher as long as the 8 is above the 34 on the SPX 30-minute chart above. The only way to curl the 8 MA over to the downside is for price to start printing below the 8 MA. That would be the first indication that the bears are coming to life again. Bears got nothing until the negative 8/34 MA cross occurs. It probably depends on what side of the bed Soybean Donny wakes up on tomorrow. 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 2:41 PM EST: The SPX is up 25 points, +0.8%, to 3118. The 20-day MA at 3110 is now support, but it was resistance at this morning's opening bell. Price may play around at this 3110-ish level for a little bit as it decides to bounce or die, or perhaps wait for another comment from Soybean Donny. VIX 14.57. Copper +1.4%. Considering the whipsaw action this week, stocks may simply stumble and bumble sideways until the US Monthly Jobs Report hits at 8:30 AM EST on Friday morning, 12/6/19. Consumer Sentiment hits at 10 AM EST Friday morning another important number.

Note Added 2:56 PM EST: The SPX has performed a 50% Fibonacci retracement of the selloff from 3154-ish to 3079-ish. The drop was 76 points, so one-half of that is 38 points so 3117 is the midpoint and the 50% Fibonacci retracement of the down move. If the SPX moves higher, it will target the 62% Fib retracement at 3125-ish. The SPX may want to nestle in that 3110-3117 area until the jobs number is released. If the SPX closes above 3118, that will open the door to 3122.

Note Added 4:00 PM EST: The SPX finishes up 20 points, +0.6%, to the 3113 palindrome. The S&P 500 nestles itself inside the cocoon formed by the 20-day MA support at 3110 and the 50% Fib retracement at 3117 (resistance). VIX 14.77. Prices are still settling out. The 8 MA is above the 34 MA on the SPX 30-minute chart so the bulls are walking around with their chests puffed out.