I reviewed the chart on the 21 July and highlighted on the possible resistance level.
The good news is the market is still ‘bullish’ though. It has breakthrough 946 and yesterday, it break through the psychological barrier of 1000.
On the Daily Chart, we can see S&P 500 (or SPX) face an immediate resistance at 1003.
Ever since it break through 946, SPX is considered to be moving into the Weekly kumo. Â Technically speaking, on Ichimoku, we consider this as a trendless state. A key level that I will be monitoring will be Â 1050.
If it breaks through 1050, I will established more positions on the bullish side . Until then, I will continue to hold my existing position and wait for it to exit the kumo on either ends.
Yesterday, S&P 500 tries to break through and establish a new high for the year.
A key point to note is that it lacks heavy volume. Perhaps, this signifies the overall market sentiments. The market is just not ready to be bullish yet at this point.
On the Daily Chart, we can see that it seems that Tenkan sen is going to cut Kijun sen on the Ichimoku chart. But, on further inspection, we can see that the forward (or leading kumo) is thinning out.
And a Â thin kumo is the equivalent of thin support. With the kumo so thin, there is just a chance that if there is a correction coming, it may come very fast and fall very quickly.
On the Weekly Chart, we can also see that it is slamming right into the kumo. Unlike the Daily Chart, the kumo on the Weekly is thick; a sign of strong resistance moving forward. The kumo also suggest resistance all the way till S&P is at 800.
As posted on April 30, S&P has some space for a bullish run.
Previously I highlighted that it will face resistant from the kumo on the Weekly Chart.
Following is an update:
1. As expected, the kumo on the Weekly Chart is fairly on the spot. S&P touches it and start making an about turn. Moving forward, we still see major resistant for the S&P. The kumo suggest resistant level all the way till S&P at about 800.
2. On the Daily Chart, we have just seen the Tenkan sen crosses the Kijun sen. Volume has drop since May. A sign that the most buying-n-selling are done. Â On the Daily Chart, we see some support at 893. However, there is a chance that the forward kumo is going to twist and show a bearish trend.