$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.


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.


$SPX : Breaking out


Despite the relatively light volume yesterday, SPX ended up and above the Chikou Span resistance.

We also have a secondary confirmation outside of Ichimoku. This comes from the Force Index below. From the chart, we can see that the Force Index has turned ‘bullish’ and this may be a good time for a long position.

If SPX close above the Support level of around 1200, we will have a confirmation that it has break out of the trading range. After which, next target is to go above the kumo at around 1229.


– Do we still feel any fear? Euro issues? US ratings issues?