The previous post highlighted that $SPX has bounced off the Kumo support on the Weekly Chart. However, that doesn’t mean we are out of the woods.
On the Ichimoku Daily Chart, we can see :
1. The price level is still below the kumo; bearish sign
2. There is no Tenkan sen – Kijun sen cross ; no bullish confirmation yet.
3. At this moment, $SPX has momentarily find support at around 1120.
4. Immediate resistance can be found in the Kijun sen at around 1225.
5. Leading kumo has turned and is bearish.
On the Weekly Ichimoku Chart, the long term trend becomes clearer.
With the price level inside the kumo, and given the sharp drop in the Daily Chart, the long term bullish trend is in uncertain territory.
The kumo resistance levels on the Weekly Chart correspond to the Chikou Span resistance levels on the Daily Chart.
Given the uncertainty, bullish positions must be placed with care.
A positive lining for the Daily Chart is:
Look at the leading kumo. We can see a flat top on the Daily Chart at around 1230. If $SPX can hold above 1230 by end September, there is a chance that the bullish play will continue …..