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S&P500

S&P500 ($SPX): Ichimoku confirms bearish cross

 

Ichimoku chart just confirms that the $SPX has a bearish cross.

Kumo support is expected to be around 1309.

4 replies on “S&P500 ($SPX): Ichimoku confirms bearish cross”

Looking at the $SPX weekly chart, all isn’t bleak yet. The last 6 weekly candles (including this week) are UUDDDD. If we add the two UU candles, we’ll see that the D candles basically stayed within the range of the combined UU candles. I am looking out for a strong U candle bouncing off 1300 next week. Just wondering whether there’s any catalyst around the corner.

See:- http://www.kabutocho.net/stock/sakata/josho/06.php
* U = up / D = down

Yes, on the Ichimoku Weekly Chart, the overall uptrend is still intact.

I noticed that it has dipped below the Tenkan sen. If we are using the Weekly Chart as a guide, it is probably time to take some profit off the table (for long position).

Same thing. Looking at 1300+.

Next week is the beginning of June (and that’s the month where QE2 ends). Probably have to take note and react accordingly.

Not sure if you do this – now and then, I like to do a look-ahead to see what the next Kijun level will be when the period rolls over; to arrive at a “predictive Kijun SR” so to speak (assuming the current candle doesn’t create a new HH or LL).

For this case (weekly chart), the candle that will be dropped is the candle for the week of 29 Nov. Happens that this is the candle which has been providing the LL point for the Kijun over this 26 week period. What it means is that the new LL is now drawn from the 6 Dec week candle (L: 1219.50). The HH is still derived from the 2 May week candle (1370.58). Using this, the starting Kijun line for next week will be at (1219.50 + 1370.58) / 2 = 1295.04

Coincidentally, that is a hairline from the lowest level of the UU pair of candles I mentioned earlier (1294.70). A bearish price cross next week will also result in a bearish Tenkan-Kijun cross (without Chikou confirmation). Or will we see a price bounce off Kijun like in Mar 2011?

A very interesting week coming up from the Ichimoku perspective.

Looking at the daily close of the $SPX, the last 3 U candles have not been able to escape the combined shadow of the prior 2 D candles.

All set for an open near the 1330 level next week, followed by a test of the 1295 level in the week. Surviving that can then set the stage for a bounce later in the week or the week after. The script is still valid, just needs a director to follow it. 🙂

Exciting week ahead!

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