$SPX . Beauty of Ichimoku. Expect a bounce.

This is the beauty of the Ichimoku trading system.

It is highly visual and in this case, does not require one to draw support level to comprehend it.

From the Ichimoku chart, we can clearly see that Chikou Span is hitting right onto the bottom of the kumo support.

We should expect a bounce. Also, we can see that the price has move away so far from the Tenkan sen.

Though, my gut feel tells me that the bounce will be short lived given the issues over in Euro. Neither am I going to hold my short for long.

There will come a time, where they will declare ‘all Euro issues solved’ and the rebound will be fast and furious.

I continue to hold short positions going into short.

Stay focus. Stay nimble.

Bond S&P500

$TLT . Showing bearish signs.

Perhaps this is one of the confirmation signals that we have been waiting for.

For the last 1 month, the market has rallied. Despite the challenges in Eurozone, it continues to edge up further. The  saving grace is the movement has become smaller.

$TLT has rallied back in August last year and consolidated at the current range since October.

At this moment, it looks like it is going to fall off the cliff soon.

The price has just dipped below the kumo support.

Leading kumo has twisted and is showing bearish confirmation.

We can also see that the Tenkan sen and Kijun sen has crossed and giving another bearish confirmation.

All we need is for the Eurozone issue to trigger a ‘mad rush’ into USD and that is sufficient to make /ES lower.


EUR/USD : Kumo resistance and support

From the above Ichimoku Daily Chart, we can see that EUR/USD fails to breakout of the thick kumo resistance.

This reflected the issues that the Eurozone is facing.

However, we might want to take note that the leading kumo is showing possible signs that the trend may turn.

Do note the support from the Tenkan sen at around 1.305

We can see how it corresponds to the support in the 15min chart from the Chikou Span

My short term bias is bearish on the Euro and believes that the level will be breached.

Vested with short position.