SPX S&P 500 60-Minute Chart with 200 EMA Cross; Short-Term Bear Market Continues; Megaphone (Expansion) Pattern

Now hear this! Now hear this! When holding a megaphone there is an urge to shout. You see a lot of jackasses at protests these days using megaphones that they buy, along with a ski mask, at the local Five Below. We can discuss the blue megaphone, or expansion pattern, below.

The 200 EMA on the SPX 60-minute chart at 6851 is far more important. It is one of Keystone's key short-term bull/bear indicators and the SPX is in a short-term bear market. The SPX is at the 6776 palindrome with S&P futures down -50. The SPX was in a short-term bear in February until late in the month when the bulls started flexing their muscles (green circle), and managed to find glory for a day and a half, but then fell on their sword, tumbling lower (red circle), and becoming more sick with each passing day (lower lows and lower highs).

The number of touches and tests of the 200 EMA are atypical but impressive for the bears. Each time the bulls tried to take the ball back at the 200 EMA resistance ceiling, they were slapped in the face and turned down again, like Keystone in high school many decades ago when he asked pretty Maggie May for a date. You stole my heart, but I love you anyways. The stock market is nothing but sideways, whipsaw, sawtooth, choppy pig slop this year and ready to roll over and die.

As long as the SPX remains below the 200 EMA, stocks will remain weak and continue dropping. The blue megaphone, or expansion pattern, or megaphone expansion pattern if you prefer, jumps off the chart. It has lots of touches that gives it street cred. The last touch is on the top rail of the megaphone so if price maintains the pattern and continues dropping, the next downside target is 6400-6500. That will get everyone's attention. Rod Stewart shed his rock 'n roll days and instead classed himself up for a long solo career. He's a lady's man. Rod and Ron Isley team up to make the ladies swoon. This Old Heart of Mine. 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.