SPX S&P 500 Daily Chart; Potential Descending Triangle; Aroon Negative Cross

The stock market staggers sideways in June after the April and May party. The SPX tops-out on 6/8/20 but currently is trying to make another run higher. This week is shortened by the Independence Day holiday Saturday. US markets are closed Friday and the Monthly Jobs Report will be released a day early, tomorrow, Thursday. Equities are typically buoyant into a holiday weekend. New money usually flows into markets to begin the second half and a new quarter providing lift to equities. The full moon peaks as Saturday turns to Sunday and stocks are typically bullish through this time period so the upside has a lot of factors cheering it forward.

Stocks may trade flat today or flat to slightly lower waiting on the jobs report. The chart above shows price respecting the moving averages. The SPX bounces off the 150-day MA at 3023 and 200-day MA at 3022 and tags the 20-day MA at 3108 from the underside. Note that price has not back kissed the 50-day MA at 2989 since the breakout above in April. This will need rectified.

The 150-day MA at 3023 remains as flat as a newlywed's souffle maintaining the cyclical bear market pattern. The slope of the 150-day MA tells you if an index or individual ticker is in a cyclical bull or bear pattern. If you are long a stock but the 150-day is sloping down, you are wrong. You need it to be sloping up to prove it is in a cyclical bull market pattern. If you are short a stock but the 150-day MA is sloping higher, you are wrong. You need the 150 to slope downwards before you can celebrate.

The NYA 40-week MA cross says the stock market is in a cyclical bear as does the SPX 150-day MA slope, albeit very close, but the SPX 12-month MA cross says the stock market is in a cyclical bull. These three indicators have to come into agreement and when they do you will know the long-term path ahead for stocks.

The SPX is taking on that blue descending triangle pattern, which is bearish. The vertical sides are 2 hundo and 250 points so if the 3000-3005 baseline ruptures, price will target the 2750-2800 landing zone. This is what the bulls fought off this week when the SPX was on the verge of complete failure at the 12-month MA at 3002 but the pump arrived and saved the day.

The ADX is down at 12 indicating that the 3-month rally is unimpressive and not a strong trend higher. The last strong trend was the selloff this year but that petered out in April. As usual for the last 11 plus years running, the Federal Reserve and other corrupt global central bankers started printing money like madmen to pump stocks higher and protect the wealthy class that own large equity portfolios. Humorously, people call this capitalism. 

Note the Aroon negative cross. That says stocks are headed for troubled and worried times ahead. See if it sticks. Watch the moving average support and resistance levels above as well as the descending triangle baseline and upper trend line breakout at 3100-ish. VIX is 31.43 and S&P futures are down -21 about 90 minutes before the opening bell for the hump day session. 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.