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S&P500

$SPX . Kumo support and possible reversal

 

SPX has been dropping over the last few days.

Mostly driven by negative news from Europe rather than the issues over at the Super Committee.

Despite, the drop and the light trading volume during the last 3 days, SPX bullish trend is still intact.

With about 1 month to go, and the SPX trading at 1160, it presents an opportunity to take a long position going into the year end.

From the Ichimoku Daily Chart, we can see

1. Despite the bearish cross from Tenkan sen and Kijun sen, SPX is still trading above the kumo which suggest bullish trend is intact.

2. For the trend to hold, we need the rebound to stay above 1183 going into December.

Beyond December, it is not clear if SPX will clear 1240. It may also fail to pierce through 1240 in the new year.