We have a few signals confirming on the chart today.
1. Letter ‘M’ seems to be forming
2. The price level is trading near kumo support
3. With the current drop due to European election news, a bearish cross has been confirmed on the chart.
4. The leading kumo seems to confirm that it is twisting; confirming the change in trend.
5. A break at the kumo support will complete the kumo twist and adds give a confirmation to the bearish move.
Note: Kumo support at 1357.27
I think this is a pretty good setup from /ES.
1. On the Daily Ichimoku Chart, /ES is hitting the resistance level at around 1386.
2. The Ichimoku indicator already has a weak Bearish cross from the Tenkan sen and Kijun sen cross.
3. Looking at the leading kumo, it suggests that there is a possibility for a change in trend.
Target timeframe around 2 weeks for the pricelevel to fall through the kumo.
Long May 139 PUTS.
Perhaps this is one of the confirmation signals that we have been waiting for.
For the last 1 month, the market has rallied. Despite the challenges in Eurozone, it continues to edge up further. The saving grace is the movement has become smaller.
$TLT has rallied back in August last year and consolidated at the current range since October.
At this moment, it looks like it is going to fall off the cliff soon.
The price has just dipped below the kumo support.
Leading kumo has twisted and is showing bearish confirmation.
We can also see that the Tenkan sen and Kijun sen has crossed and giving another bearish confirmation.
All we need is for the Eurozone issue to trigger a ‘mad rush’ into USD and that is sufficient to make /ES lower.
