Review of last week closing for SPX and RUT to start the week.
Both SPX and RUT exhibit bearish signals from the candlesticks despite the Ichimoku has not indicate it.
On the SPX, we can see the following:
- There is a bearish engulfment form on the candlesticks alone.
- The price has dipped below the Kijun sen
- Support from Kijun sen is at 1183
On the RUT, we can see the following:
- Bearish engulfment on candles
- No Tenkan sen and Kijun sen cross. Price has cut Tenkan sen but not Kijun sen.
- Support is showing at 711 which is indicated by both the Kijun sen and Chikou Span
How I will probably trade?
My personal biased at this moment is DOWN.
However, I am also keeping in mind about the Greece bailout issues.
I have learnt not to guess where the market is going as market can react differently to the news.
So, if it breaks support, I will go short and vice-versa. Though if I trade on the bullish side,, I will also check the resistance level and take note of it. We can see from the chart that for the last 3 trading days, there has been 2 sell down.