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.

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.

I establish a long position when the market hits 1160. On the chart, it was sitting right on the kumo support.

My long position was established with the belief that the year end rally will materialise and the Euro issues will be sorted out (at least temporarily).

With this strong rebound and a resistance of 1260 ahead, I have taken my profits and close off positions for the year. With this strong rally, there is a high chance that 1260 will be taken in a week or two and the rally will continue till year end.

Thinking back, this year has been a good year for me. I made the most money during the volatile period. It is time for a little celebration.

Throughout December, I will be looking through my past trades and reflect on areas where I can do better.

Here’s wishing everyone a great festive season and a great new trading year ahead.

SPX has been dropping over the last few days.

Mostly driven by negative news from Europe rather than the issues over at the Super Committee.

Despite, the drop and the light trading volume during the last 3 days, SPX bullish trend is still intact.

With about 1 month to go, and the SPX trading at 1160, it presents an opportunity to take a long position going into the year end.

From the Ichimoku Daily Chart, we can see

1. Despite the bearish cross from Tenkan sen and Kijun sen, SPX is still trading above the kumo which suggest bullish trend is intact.

2. For the trend to hold, we need the rebound to stay above 1183 going into December.

Beyond December, it is not clear if SPX will clear 1240. It may also fail to pierce through 1240 in the new year.