SP500 - Trouble ahead! 200 day MA matches Ichimoku criteria

FX:SPX500   S&P 500 index of US listed shares
443 3 8
- Ichimoku is still bullish , but Kijun Sen being attacked. Not yet a big drama, real selloff would (will?) start below 1970 area.
- Heikin Ashi is firm and increasing bearish
(- In case 1970 breaks, I think we will see a 1987             type of collapse, not a Lehman-style.)

- Ichimoku is bearish , Price, Tenkan, Kijun and Chikou Span are all below the Kumo, but there is clearly a denial, and knee-jerk buying at the 200 days MA. Valid bearish Kumo breakout needs to meet the criteria of breaking the previous low as wellwhich was at 2040. This is pretty much in line with breaking the 200 days MA.
- Watch Heikin Ashi! The candle pattern itself (long wicked doji candles) shows undecision or basically a big fight between bulls and bears, however haDelta/SMA3 rather looks like a possible bearish cross below zero line.

2040-2050. That's it. If it trades below, a major correction will take place... or a krach, but that you never know in advance.

Anyway, for Bulls it is wise to take cover, hedge, and reduce long equity exposure. Bears, get ready!
2 years ago
Nice analysis! I totally agree with you. There is a nice risk reward for shorters on the S&P500.
2 years ago
I agree, but I think the top building (can-kicking) will take some longer time. My bet is we will see morerange trading around 2090 before it really drops a lot.
Tradebert PRO
2 years ago
I do not understand the Japanes candlesticks, I have to study them:), but it sounds good. Also indicators come under pressure
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