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
This is a follow up post fromÂ http://tradingichimoku.com/2011/10/28/spx-kumo-resistance-on-weekly-chart/#more-2711
Previous post shows SPX trading within the Weekly kumo. It has yet to breakout of the kumo; showing that the longer bulls trend is not established yet.
And this is definitely true, given the debt issues in Europe.
On the Ichimoku Daily Chart, we can easily that it is trading above the kumo.
This drop, due to Italy’s debt, will see possible support at around 1220.
On the Ichimoku Weekly Chart, we can see that support lies around 1200 at the base of the kumo. For the trend to hold, SPX must trade above 1200 going towards year end.
I am expecting that the $SPX will retrace first before breaking out of the kumo.
If it retrace, I am looking for an entry around 1177.
From the Ichimoku chart, we can see that 117 is where the Tenkan sen and Kijun sen are close together; suggesting that the support level may be stronger there.