$SPX : Bulls yet?


The market has refused to go down for the past 5 trading days since touching the the low of around 1100 during August.

Back then the mood is terrible. Market has wild swings and the trading range is huge. However, with the 1100 ‘bottom’, the support level seems to have held and trading range has narrowed.

We have since see SPX forming higher low, though there is no higher high yet.

With ‘less fear’ in the market now, the question is, “Are we in a bulls market yet?”

From the Ichimoku Chart, we can see:

1. Market has been forming lower lows

2. The kumo is fairly thick; suggesting resistance ahead

3. Weak Tenkan sen – Kijun sen cross

The Tenkan sen – Kijun sen cross signals the attempt that the market is trying to rally back. However, huge resistance comes in the face of the thick kumo.

Unless the price level can break out of the kumo, the view remains bearish.

And if the price level retrace and trades within the kumo, it represents uncertainty and there is no clear bearish/bullish trend if the range is between 1230 and around 1200

Under such conditions, I will continue to short the weak stocks. RIMM.

On my watchlist, I am ready to long the stronger players including $AMZN, $AAPL, $UA; all of which are trading above the kumo.

By iam802

Trend trading with Ichimoku