SP500 - Not much change except one more warning signal on weekly
Weekly:
- Ichimoku picture is same: bullish bias with decreasing momentum (turning neutral)
- Heikin Ashi picture is same: colour changing candles with small bodies show consolidation and undecision
- NEW WARNING signal for trendfollowers -> Kijun Sen moved higher, and stays together with Tenkan Sen at 2082! Price is too close to this very important 26 weeks average. If Price can not get bullish momentum from here, the major bullish trend will be in serious danger!
Why is it so important? In strongly trending markets Ichimoku trendfollowing system works extremely well. As a basic rule in uptrend Ichimoku trendfollowers place their protective trailing stop at Kijun Sen (26 period average) minus some buffer. In this case long term strategic players should have their trailing stops in 2055-2080 area!
If you look back until 2012, since the start of this bullish run there was only one case when weekly candle broke and closed below Kijun Sen (October 2014). Next "support" and the real ultimate stop level for trendfollowers is normally ard the 100 WMA or Kumo bottom (Senkou B line = 52 weeks average), but in fact if that is going to be in focus, that would also mean a clear trendbreak.
Daily:
- Nothing to report, same neutral Ichimoku setup, price action is almost random. Price is back to 2090 short term equilibrium.
- As I wrote on Twitter yesterday, Ichimoku as a trendfollowing system can not help you with clear entries in sideaway markets. Actually it can tell you one thing if you are a strict trendfollower: "Stay away until the break happens!".
This one reason I combine Heikin Ashi with Ichimoku. Heikin Ashi signals are still useful and can give you some clue about how the bias or momentum changes within the horizontal trading range. In last two days it tells us short term bullish momentum disappeared again.
First key level is the 2055-2080 zone!
- Ichimoku picture is same: bullish bias with decreasing momentum (turning neutral)
- Heikin Ashi picture is same: colour changing candles with small bodies show consolidation and undecision
- NEW WARNING signal for trendfollowers -> Kijun Sen moved higher, and stays together with Tenkan Sen at 2082! Price is too close to this very important 26 weeks average. If Price can not get bullish momentum from here, the major bullish trend will be in serious danger!
Why is it so important? In strongly trending markets Ichimoku trendfollowing system works extremely well. As a basic rule in uptrend Ichimoku trendfollowers place their protective trailing stop at Kijun Sen (26 period average) minus some buffer. In this case long term strategic players should have their trailing stops in 2055-2080 area!
If you look back until 2012, since the start of this bullish run there was only one case when weekly candle broke and closed below Kijun Sen (October 2014). Next "support" and the real ultimate stop level for trendfollowers is normally ard the 100 WMA or Kumo bottom (Senkou B line = 52 weeks average), but in fact if that is going to be in focus, that would also mean a clear trendbreak.
Daily:
- Nothing to report, same neutral Ichimoku setup, price action is almost random. Price is back to 2090 short term equilibrium.
- As I wrote on Twitter yesterday, Ichimoku as a trendfollowing system can not help you with clear entries in sideaway markets. Actually it can tell you one thing if you are a strict trendfollower: "Stay away until the break happens!".
This one reason I combine Heikin Ashi with Ichimoku. Heikin Ashi signals are still useful and can give you some clue about how the bias or momentum changes within the horizontal trading range. In last two days it tells us short term bullish momentum disappeared again.
First key level is the 2055-2080 zone!
