Yesterday, the market scores a follow through the 3 indices going up by more than 2 percent.
On the Ichimoku Daily Chart, we can see that the SPX close above the Kijun sen (trendline).
At this rate, there is a possibility that SPX may pierce through the kumo resistance at around 1040 before June 28.
Do note that there aren’t much news that push the indices up yesterday. So, likewise, any bad news can sent them tumbling down as well.
What I would like to highlight is the possible development of a head and shoulder on the Daily Chart.
If SPX goes to around 1050 and reverse and stay below the kumo, be prepared for a very nasty downwards drop.
A head and shoulder confirmation could sent the SPX going as far as 880.
1. To get the target price, subtract the top of the head from the neckline (ie 1220 – 1050 = 170)
2. From the neckline (around 1050), subtract 170 and we will get 880.
Incidentally, 880 is a level around the kumo support on the Weekly Chart.