S&P 500 ($SPX) : Weekly Kumo resistance and support


This is a follow up post from

Previous post shows SPX trading within the Weekly kumo. It has yet to breakout of the kumo; showing that the longer bulls trend is not established yet.

And this is definitely true, given the debt issues in Europe.

On the Ichimoku Daily Chart, we can easily that it is trading above the kumo.

This drop, due to Italy’s debt, will see possible support at around 1220.

On the Ichimoku Weekly Chart, we can see that support lies around 1200 at the base of the kumo. For the trend to hold, SPX must trade above 1200 going towards year end.

Consumer Goods

Coca Cola ($KO) : Kumo support and resistance breakout


Coca Cola ($KO) has a pretty good run yesterday despite the average volume.

From the Ichimoku Chart, we can see how it opens low on Sept 6 and close high for the day. On Sept 6, the market is generally rallying upwards. What separates it from the rest is that $KO is supported by the kumo and it closes above the kumo; a breakout signal from the kumo.

The second confirmation comes the following day on Sept 7.

$KO gap up and make a move; breaking 2 resistance levels in one move and hitting a 52 week high in the process.

I believe $KO is going to head higher.

A peak at its Financial Ratio for Q3 (July 2011) from Google Finance suggest so.


Q3 (Jul ’11)2010
Net profit margin22.01%33.77%
Operating margin24.92%24.06%
EBITD margin27.78%
Return on average assets14.41%19.51%
Return on average equity33.28%42.32%

The third confirmation from the chart comes from the leading kumo.

We can see that it has ‘twisted’ and is showing a bullish trend moving forward; reversing from its previously bearish outlook.


$KO reporting earnings before market on Oct 18


S&P 500 ($SPX) : Weekly Kumo Support

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.