The market has been going down for about 9 days.
The drop has been very fast and big.
On the Daily Ichimoku Chart, we can see :
1. It has pierce through the kumo support so easily and with such big movement.
2. The second support after that is the support from the Chikou Span. Even that does not hold.
3. Yesterday’s the market scored another big drop. On the Daily Chart, it does not offer much glimpse of where the next possible support is.
This is where I turn to the Ichimoku Weekly Chart.
From the Ichimoku Weekly Chart, we can see that SPX is fast approaching the kumo support on the Weekly.
And with such big drops going on for the last 8-9 days, the Weekly Support may provide a right level for entry for a short bounce. Whether the possible short bounce will turn into a counter-bear rally will require more monitoring (if it happens).
I will be looking for a long entry (around 1175 and 1190) over the next few days with a stop loss in place.