The 8 MA stabbed under the 34 MA on Friday to signal bearish markets for the hours and days ahead, however, the bulls are strong, with pockets full of Helicopter Ben's dough, and continue to recover. Thursday was another stutter step where the bulls recovered and then on Friday afternoon, taking advantage of the pre-holiday bullish buoyancy that typically occurs, the bulls pushed markets higher into the closing bell. The SPX has not yet logged a down week for the entire year thus far. The Tuesday morning opening is very important since it will determine if the 8 MA wants to curl upwards to help the bulls, or, collapse and continue running down to keep the bears in the drivers seat.
The pink H&S shows a head at 1525, and the critical neck line support at 1514-1515 that was tested last week, which would target the strong 1505 support if 1514 fails. Under 1505, the 1498 support is strong and then 1494 is a key level as well as highlighted in the SPX Support and Resistance missive posted earlier today. The red rising wedge and negative divergence spanked price down as we watched late last week. The indicators are in a firm downtrend so lower prices would be anticipated. Watch the 8 and 34 MA cross as Tuesday trading begins, it will tell you what you need to know. 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.