Weekly:
- Can it be the 5th week of undecision or will it be different? Heikin Ashi candles have been giving mixed signals. Recent candle and haDelta points down, but it is only Monday
- Ichimoku Setup is still bullish, with first important weekly support at 1972. Senkou lines, Kijun Sen and now also Tenkan Sen is becoming flat, which also tell us the market has started to move sideaways.
- Price is in the middle of the trading range that has been developing since November/2014. This range is 2020 - 2110.
Daily:
- Couldn't make a lower low below 2040. Ichimoku setup is turning back to neutral.
- Heikin Ashi signal is short term bullish
- supp/res lvls are 2080 and 2100.
4H:
- Ichimoku setup turns neutral. SP500 clearly has no trend right now. Price is at the Kumo, slightly below Tenkan and Kijun. Tenkan and kijun stay together (9 days and 26 days averages are almost the same), what's more, all average lines, including Senkou lines are flat. Chikou Span is swinging around past candles (below candles right now).
- Heikin Ashi signals short term up move is more possible: on friday we had an inside body candle (there was no further selling pressure) and today we can have a doji, likely with an inside body again. Obviously haDelta/SMA3 points up. I think sellers will take a pause, and as we get close to end of month and Q1, Price will climb back up to or over Kijun Sen.
- Upper resistance is 2080.
All in all the major US equity index stopped trending. I expect it to trade in this range for some more time. Short term it will be likely up. However I have doubts it will be able to continue bullish trending in the long run due to strong USD effects and also to rate hikes which will happen sooner or later. We may get to the end of a 6 years bull market this year, or the minimum I still expect is that SP500 will underperform all European peers, so I do not like any idea of holding strategic longs, I'd rather look for sell signals from time to time.
- Can it be the 5th week of undecision or will it be different? Heikin Ashi candles have been giving mixed signals. Recent candle and haDelta points down, but it is only Monday
- Ichimoku Setup is still bullish, with first important weekly support at 1972. Senkou lines, Kijun Sen and now also Tenkan Sen is becoming flat, which also tell us the market has started to move sideaways.
- Price is in the middle of the trading range that has been developing since November/2014. This range is 2020 - 2110.
Daily:
- Couldn't make a lower low below 2040. Ichimoku setup is turning back to neutral.
- Heikin Ashi signal is short term bullish
- supp/res lvls are 2080 and 2100.
4H:
- Ichimoku setup turns neutral. SP500 clearly has no trend right now. Price is at the Kumo, slightly below Tenkan and Kijun. Tenkan and kijun stay together (9 days and 26 days averages are almost the same), what's more, all average lines, including Senkou lines are flat. Chikou Span is swinging around past candles (below candles right now).
- Heikin Ashi signals short term up move is more possible: on friday we had an inside body candle (there was no further selling pressure) and today we can have a doji, likely with an inside body again. Obviously haDelta/SMA3 points up. I think sellers will take a pause, and as we get close to end of month and Q1, Price will climb back up to or over Kijun Sen.
- Upper resistance is 2080.
All in all the major US equity index stopped trending. I expect it to trade in this range for some more time. Short term it will be likely up. However I have doubts it will be able to continue bullish trending in the long run due to strong USD effects and also to rate hikes which will happen sooner or later. We may get to the end of a 6 years bull market this year, or the minimum I still expect is that SP500 will underperform all European peers, so I do not like any idea of holding strategic longs, I'd rather look for sell signals from time to time.
