$SPX . Break from here will confirm the bears

The Ichimoku chart for SPX looks all setup for a bear position.

1. Currently, the price level is just holding on to the Chikou Span support level.

2. Yesterday’s intraday session suggest something worse. If we look at the candlestick, it suggests that it opens high and close low; going below the Kijun sen as well.

Both the Tenkan sen and Kijun sen are now flattening which suggests that if the support holds, it will be a consolidation. However, a bear move is higher.

3. The rationale for placing more bets on the bear move is because of point 3 on the chart. A possible ‘M’ formation. The chart has shown a double top and it does seems to be heading higher in the short term.

I believe, it will retrace to the kumo support level, which is closer to 1414 and 1390. After which, it will be critical that it does not break the kumo support.

By iam802

Trend trading with Ichimoku