$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 : Ichimoku poised for breakout

It seems like EUR/USD has lots of momentum and expectations behind it to push it towards 1.4

On the Ichimoku Chart, we can see EUR/USD just trading below 1.4 (at around 1.39)

Currently, there’s a pretty strong upwards movement and we can see that from the steep Tenkan sen and a ‘bullish’ cross below the kumo.

If it break out of the kumo, I am expecting EUR/USD to hit 1.44

It is fair to say that  a lot of it will depends on the outcome of the rescue packages in EU. Possible risk includes a much bigger rescue package required than what is expected.