SPX S&P 500 60-Minute Chart with 200 EMA Cross; Back Test Should Reveal Direction Ahead for Stock Market

The Keystone Speculator's SPX 60-Minute Chart with 200 EMA Cross Indicator is a great short-term (ST) tool to gauge stock market direction. Price is at 4100 and the SPX 200 EMA on the 60-minute is at 4046 so the bulls remain in charge in the ST.

Thus, mathematicians say thus a lot, it is logical that the S&P 500 should drop for a back test of this critical support at 4046. That is about 50 points below current levels on Thursday morning.

Note that the SPX has not tapped the 200 EMA for the last month so price needs to get down there and give it a smooch. You know the drill. When/if this happens, the SPX will make a critical bounce or die decision that will tell you the path forward for stocks. So, for now, the expectation is for more sogginess until the 200 EMA on the 60-minute at 4046 is tested. 

The 20-day MA is at 4088 so this is an initial support test when/if price heads lower. The key 50-wk MA is at 4016 so this support level carries clout going forward. Ditto the super-critical and decider the 12-mth MA at 4018.

Obviously, when/if price drops and tests 4046, if it fails, and dies after the bounce or die decision, then the 4016-4018 support is the next target where the fate of the stock market will be decided for months forward. If price bounces from 4046, the bulls will be back in biz.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 Friday Morning, 2/17/23, at 6:30 AM EST: The SPX drops 57 points, -1.4%, yesterday to 4090 using the 20-day MA at 4088 as support. Of course it is. LOD is 4089. Thus, price is making a bounce or die decision from the 20-day and S&P futures are down -30 so the bears want to keep growling and a test of the critical 200 EMA on the SPX 60-minute chart at 4051 (the moving average is moving higher) is likely. Watch today for a potential test of the 200 EMA and another important bounce or die decision from this support as explained above.

Note Added Friday Morning, 2/17/23, at 11:12 AM EST: The SPX drops to 4050 to test the 200 EMA on the 60-minute. Of course it does. The battle at 4050-4051 begins with the LOD at 4049 and price now at 4058. The SPX is deciding if the short-term bull market will continue, or not. Bounce or die.

Note Added Sunday, 2/19/23: The SPX finishes last week at 4079. The 12-mth MA and 50-wk MA are both at 4016. How do you like 'dem apples? A major test of the cyclical bear market is likely on tap at 4016. Bulls win above 4016 but bears will create carnage below 4016.