Now just a doggone minute. The market behavior is getting ridiculous and out of hand. The 8 and 34 MA crosses are expected to occur about once every two to five days showing the ebb and flow of short term bullish and bearish moves. That has all changed over the last month as markets move through sideways choppiness chewing up longs and shorts alike. Note the increased frequency of the 8 and 34 MA crosses, six in the last nine days and that is not counting the mess in the blue box. This illustrates the erratic and indecisive action now occurring in the markets. How fitting that the price behavior would end the week with the 8 and 34 tracking dead on top of each other. This is a market toss-up. The markets have to make a commitment up or down but are frozen like a deer in the headlights. The markets must choose a direction this week.
The indicators show pure sideways behavior and will not tip the hand as to which side is favored. Watch to see which side of th e50% level the RSI is on which provides a vital clue. Ditto the 50% level for the money flow and stochastics and the zero line for the MACD. The purple lines show the inverted H&S in play. If the SPX breaks through 1525-1526, then a test of the 1531 top for this year comes quickly, if that gives way, then the 1550-1565 is next. Monday’s opening bell is critical. There is no economic data so the markets will likely be more susceptible to global news, so China, Japan, and/or Europe may provide some excitement overnight Sunday that determines the U.S. open. Of course, the 8 and 34 MA cross will immediately identify the winner when the bell rings. The 8 is above the 34 MA right now (by 78 pennies) which signals bullish markets for the hours and days ahead, however, watch the 8/34 MA cross during the first hour of trading on Monday to determine broad market direction. 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.