S&P 500 (SPX) : Ichimoku Weekly Chart shows consolidation. No distribution.

On the Ichimoku Weekly Chart, SPX is showing signs of forming a base between 1010 and 1080.

At this moment, the Chaikin Money Flow indicator is not showing any signs of distribution.

Looking ahead, we see a flat kumo top. This suggest that there will be support at 990 but at the same time, it also suggests that SPX may also trade at the level in the coming 2-3 months (flat kumo is a sign of equilibrium which ‘attracts’ price level to grativate towards it)

I will still stick to my point that we are now in a ‘trendless state’ as the price level is inside the kumo and the leading kumo is flattening off. This has been highlighted in my previous post dated August 20 when the price level enters the Weekly Kumo.

2009Oct-S&P 500-800x600

By iam802

Trend trading with Ichimoku