This is the review of SPX chart based on Ichimoku as of August 16, 2010.
The reading is to help remind me of where the current trend is. And the possible levels to take note of.
Currently, 2 key observations can be found on the Ichimoku chart.
1. Range bound
As identified by the blue square drawn, the market has been range bound over the last 1-2 months.
Unfortunately, the range is pretty wide and this further suggests volatility or unsure direction in the market.
2. At this moment, after a fairly strong rally from the market, the market is retracing. However, from the chart, there is no indication that the market is very bearish. Part of it is due to the strong rally a month back which sees the level goes to about 1130.
3. Currently, the price level is trading within the kumo; which suggest it is a trendless market at this moment since the market has been going up and down for the past 1-2 months with no clear indication of where it is heading.
4. A drop below 1060 will probably see more bearish play coming out with a target level at around 1020
5. And a breakout above 1090 by September could signal renewed interest from the bulls to push things higher with a target level of 1120.
On the Weekly Chart, we can clearly see that it is now sitting on the kumo for support.
The leading kumo on the Weekly Chart is suggesting that the longer term trends could be changing.
And the kumo support levelÂ coincidesÂ with the Daily chart support level.
1078 and Â 1020 are going to play a fairly huge role as a critical support levels.