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

The SPX drops below the 200 EMA on the 60-minute chart at 3084 ushering in a VST (very short term; hours and days) bear market. All Hades breaks loose. The negative 200 EMA cross on the 60-minute now confirms the negative 8/34 MA cross on the SPX 30-minute chart. Hence, the bulls are slapped and beaten. Copper sinks. Volatility pops with the VIX above 17 which is above its critical 200-day MA and Keybot the Quant algorithm's key level at 15.11. Stocks collapse. As Bob Dylan would say, "It's All Over Now, Baby Blue."

Now that the 200 EMA on the SPX 60-minute at 3084 has failed; it's ovah. Equities will fall like rocks and a -5% pullback is on the table. The bulls must push the SPX above 3084 to save the day and stop the imminent carnage. The chart is setting up with possie d. You see the MACD line is weak and bleak, and the histo, so price needs another two to four candlesticks, a jog move, up, down, or up, down, up, down, to place a matching low and set the MACD up with possie d. So the S&P will bounce, say, in about an hour or three.

As the SPX comes back up, watch the 200 EMA at 3084; it is for all the marbles. If the back kiss is successful (for bears), the S&P 500 will collapse and potentially accelerate wildly lower. If the SPX comes up for the back test, and then keeps on moving higher and recovers above 3084, the stock market bulls will be fine.

Price has violated the lower band so the middle band at 3127, and dropping sharply, is on the table. Bears need to keep the SPX below 3084 and they will create bloody market carnage and misery each day ahead. Bulls need the SPX above 3084 to start building on a strong relief rally. 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 11:35 AM EST: The SPX is down an ominous 36.66 points, -1.2%, to 3077. VIX is at 16.93 retreating off the HOD at 17.99 which was one penny shy of an 18-handle. For lower lows to occur with stocks, higher highs must occur with volatility. The central banks are in there with their jack boots on the throat of volatility trying to get things under control. Treasury yields are; 2-year 1.52%, 5-year 1.52%, 10-year 1.70%, 30-year 2.15%. The 2-10 spread is 17.5 bips. The 2's-5's are basically inverted again.

Note Added 11:44 AM EST: The SPX is down 32 points, -1.0%, to 3082. VIX drops to 16.44; it is choked lower by Jerome and the gang, so equities pop. The chart indicators on the SPX 60-minute are all positively diverged except for the MACD line so a down-up move with the candlesticks will place the bottom in this 60-minute time frame; so the bottom should be in say in one or two hours, let's call it later this afternoon. The move higher will then begin and the underside test of the 200 EMA at 3084 will dictate who wins going forward. Price is at 3080 now so the bears will need to fight hard to keep it below 3084.

Note Added 12:02 PM EST: Today has lots of moving parts. The SPX 2-hour chart displays positive divergence with the RSI and stochastics indicators, as well as oversold conditions, so this supports the bounce that will be coming for the 1-hour chart. However, the 2-hour shows weak and bleak MACD line and ROC wanting to see a lower low in the SPX in this time frame. Thus, mixing the one and two-hour charts together and sprinkling on some magic dust, the SPX should bottom on the one-hour chart this afternoon. Price will likely come up and test the critical 3084 level, and fail, due to the weak and bleak indicators on the 2-hour. The SPX will then drop away from the 3084 but about four of the 2-hour candlesticks out, say in about 8 hours, which would be tomorrow morning, would be a bottom for the SPX in the 2-hour time frame. This will likely be a more solid bottom and may have a better chance to come up and attack the 3084 resistance. Markets are moving fast and will continue that way today and tomorrow. Note that Keystone's 80/20 Rule works again. 8's lead to 2's and 2's lead to 8's so the failure of SPX 3120 opened the door to 3080, which occurs. The 3082 opens the door to 3078 which occurs. Copper -1%.

Note Added 1:19 PM EST: The SPX is down 29 points, -0.9%, to 3085, one point above the critical 200 EMA on the SPX 60-minute chart at 3084. Even though bloody and bruised, the bulls cheer since they have regained the critical 3084 battleground. The SPX will probably be spanked back down for a potential more healthier VST bottom to be placed tomorrow (as discussed above). The SPX tags 3086 so the bulls are starting to puff their chests out. The fifth 65-minute trading segment of the day begins at 1:50 PM EST and the sixth and final 65-minute segment of the trading day begins at 2:55 PM EST. The stock market may experience inflection points when these time segments switch over.

Note Added 1:27 PM EST: The SPX is at 3086. The bears are trying to beef up the resistance and hold the line at 3084-3086 and push price lower. Bam. Comrade Powell and the gang jam volatility lower smacking the VIX down to 16.02, check that, bloop, 15.97, so stocks rally. The SPX recovers to 3087 starting to put distance between itself and the critical 3084 level. The Fed members are huddled around the flat screen in the conference room at the Eccles Building and shout a cheer of joy as stocks slowly ramp higher. SPX 3088. Herr Powell and the gang call the local pizza joint for a delivery. VIX 15.94.

Note Added 2:18 PM EST: Price pulls back to the key 3084 and may be sticky around here the remainder of today and tomorrow morning. VIX 16.34. It is difficult for the corrupt central bankers to keep the VIX beachball underwater. The bottom in the VIX at 15.85-ish, and the drop off the day's high at SPX 3090, both occur during the handover from the fourth trading segment to the fifth between 1:45 PM and 1:55 PM. Watch that 2:50 PM to 3:00 PM time slot for potential market excitement.

Note Added 2:23 PM EST: The SPX is down 30 points, -1.0%, to 3084. VIX 16.32.


Note Added 7:05 AM EST: The SPX finishes down 21 points, -0.666%, to 3093. The 200 EMA on the SPX 60-minute is 3084 so the bulls are in control for the VST. VIX 15.96. The bears must push the SPX below 3084 pronto or they got nothing. The MACD is weak and bleak on the SPX 2-hour so price likely needs to come back down tomorrow to the sub 3080 area and that may place a bottom in the VST. The battle for 3084 continues.