The futures gap up before the PMI figures is released.
Despite the gap up, SPX face immediate resistance from the Chikou Span at 1273.71 and 1284.3
Switching to the Ichimoku Weekly Chart, we can see that SPX is trading inside the kumo on the Weekly and has not cleared the kumo.
This suggest that the long term bullish trend has not been established yet.
The leading kumo on the Daily Chart is also very thin. A hint that support will be weak as it goes further towards end January.
In my previous post, I was hoping for 1218 to hold. The market open below 1218 and I did not manage to get a good confirmation to go long.
The market has continue to be weak since.
Even as the futures is now up on German business confidence, the bearish sentiment remains.
On the Ichimoku chart, we can now see that the leading kumo may be twisting. This is a sign that the trend is changing.
Moving forward into the new year, I will be very careful going long. With the price level now within the kumo and yesterday break below the Kijun sen (trend line), the bearish signals seems to be coming together.
http://stockcharts.com/h-sc/ui?s=$SPX&p=D&b=5&g=0&id=p80947301804
With 2 more weeks towards the year end (and possible window dressing), $SPX is offering a good opportunity for a short term long entry.
From the Ichimoku chart, we can that $SPX is sitting right on top of a fairly thick kumo support at around 1218.
The base of the kumo is flat which suggest that the price has consolidated at this level with a hint from the leading kumo that it is striving to break through and continue the uptrend.
I will look for an entry with a target of 1280 with a 2 weeks to 1 month timeframe.
