SPX S&P 500 60-Minute Chart; Stock Market Loses Critical 200 EMA Support at 3255

One of Keystone's fave short-term signals is the 200 EMA cross on the SPX 60-minute chart. As seen above, the bulls were partying well above this critical bull-bear line in the sand but today, the SPX fails below the 200 EMA. On Monday, the S&P 500 teased failure at the 200 EMA. Do you remember that excitement? You can scroll back and relive the drama.

If the SPX remains below the 200 EMA on the SPX 60-minute chart at 3055, the stock market is toast. Typically, a big flush lower would be expected now. The chips (SOX) failed a short time ago. The coronavirus may have spread from person-to-person in the US. And now the 200 EMA fails. As they say at the baseball game, one, two, three strikes and yer out.

A big flush lower would be expected especially each minute the SPX remains below 3255. 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 1:35 PM EST: The SPX is at 3252 perhaps coming up for another back kiss of the pivotal 3254-3255 level. The LOD is 3242.80. If this back kiss is successful for the bears, and she fails, we may see the big flush lower. The 3242 support would be tested and if that fails, there would be market carnage ahead. It is hilarious to see traders running for their lives worried about losing their money. That's humans. The coronavirus news is casting a darkening pall across the stock market.

Note Added 1:42 PM EST: The back test at 3254-3255 is in progress. Price is at 3253. The S&P 500 is deciding to bounce, or die, right now. Which will it be? SOX is at 1828 below the critical 1830.45 bull-bear line in the sand identified by Keybot the Quant algorithm so the expectation would be for a spankdown from this critical back test. SPX is at 3253.... it's deciding....... will price jump up above 3255 and rally into the closing bell with the bulls slapping each other's backs bragging that they bot the dip, or, will price collapse from here, fall through the LOD at 3242, and then deteriorate from there?

Note Added 1:46 PM EST: SPX 3253. VIX 17.46. SOX 1830. The bulls are goosing the chips to try and save the stock market today.

Note Added 1:48 PM EST: Here is the back kiss. Smoochie, smooch. SPX is at 3254. Bounce or die. Come on stock market, make a decision already. Are you going to live, or die?..

Note Added 1:51 PM EST: SPX 3251. VIX 17.60. SOX 1828.65. The bulls cannot push the SOX fat man up the ladder. The bears have the market in their paws and may begin slashing. It is a given that you are already strapped into your seat with your helmet on. Bulls must push the SOX above 1830.45 or they are toast.

Note Added 2:01 PM EST: The SPX is back up again at 3253 continuing the back test. The stock market cannot decide which side it owes allegiance to, the bulls or the bears. Each minute the SPX remains below 3255, is another nail in the bull's coffin. We may have an exciting end to the day in store. The SPX does not want to give up the ghost, therefore, if she does, it may get quite ugly quite fast. Hell hath no fury like a woman scorned.

Note Added 2:09 PM EST: This is it. SPX is above 3254.12 with the 200 EMA at 32354.80. This price action and pivot decides the stock market direction into the closing bell. Bounce or die. It is time for the stock market to make its decision.

Note Added 2:11 PM EST: The bulls are puffing their chest out with the SPX at 3256. The bulls are emboldened and think they can overcome all the negativity today. SPX 3256.66. Ho, whoa, ho, those rascals! The bulls goosed the chips with the SOX jammed higher to 1833.50 and climbing, hence the SPX is at 3257 overtaking the 200 EMA at 3255. This battle is likely not over. The bulls are happy with the chips back in their camp.

Note Added 3:28 PM EST: Wheeee. Whoopie. The bulls are not only goosing the chips, with the SOX up to 1846, but also the financials, pumping XLF higher to 30.44 creating stock market joy. The SPX teases positive on the day now at 3272 far away from the 3255 line in the sand. The bulls dodge a bullet again like on Monday. VIX 16.38. Looks like choppy slop may be the order of the day going forward. The chips, banks and retail stocks are being poked and prodded enough to keep the stock market elevated while the VIX remains above its critical 200-day MA at 14.97, which says the stock market bears are in charge going forward. Choose your poison. Scamazon reports earnings after the bell. Traders do not appear concerned about the coronavirus. WHO seems laissez-faire about the situation. Coronavirus, schmoravirus. Not even a pandemic-level disease can stop the stock market buying.

Note Added 3:43 PM EST: The SPX is up to 3278 coming up to test the 20-day MA at 3280-3281. This is another bounce or die level. If the bulls can punch up through 3281, the stock exchanges will erupt into an obscene orgy party of bullish upside pleasure. However, if price hits its head on the ceiling here and fails to overcome 3280-3281, the SPX would likely be spanked down lower probably to the 3255 support again. These two levels may be very telling going forward, 3255 and 3280, and the bulls may punch up through 3280 as this is typed. Bulls win big above 3280. Bears win big below 3255. It's a knife-fight between 3255 and 3280 with the bulls and bears slicing each other up.

Note Added 3:49 PM EST: Woohoo. Wheeee. Here's the test. SPX is at 3280. Price is testing resistance at the 20-day MA at 3280 to see if it has the strength to push up through, or, if it will crumble into the closing bell.

Note Added 3:52 PM EST: The bulls are walking around with thier chests puffed-out figuring the day is a slam-dunk in their favor. The SPX is at 3281 and the bulls are already counting their chickens before the eggs hatch. The test of the 20-day resistance is in progress.

Note Added 3:55 PM EST: SPX 3282. VIX 15.97. SOX 1854. XLF 30.56. The banks are being pumped hard. The chorus line dances out from behind the curtain by the snack bar at the NYSE. The lovely long-legged ladies hypnotically kick their legs in sync with traders executing large-block buy orders; such is the rhythm of Wall Street. SPX 3284. The bulls are happy. Virus, schmirus.