SP500 - It always looks more bullish on the top of the range
Weekly:
- Ichimoku setup remains bullish until Price trades above Kumo and Kijun Sen. Please note that Kijun Sen is at same level with Senkou B around 1955. This is the first very important support. There is one more important support at 1910. Real problem and trend reversal would start only below 1910 and especilly below 1840.
- HA candles have been confusing since early december. 2 red, 2 green, 2 red, 2 doji, 1 green. This is still a sideaway consolidation, but with revent candle being green and haDelta/SMA3 crossing back above zero line the bias is mor bullish again.
Daily:
- With price slowly back above Kumo it looks bullish biased again on the daily timeframe too. However looking at Ichimoku averages it is still clear SP500 is in consolidation. All lines (Tenkan, Kijun, Senkou A and Senkou B) are absolutely flat at 2030, with no direction. Price has been swingin around this 2030 equilibrium. not surprising that Chikou Span shows no directional indication either. That is also swinging around Price candles.
- Heiken Ashi candles are green in a row, haDelta and the Oscillator points bullish.
All in all it looks more bullish again, but in fact it is still rangebound. For Bulls to really get back in power Price should break 2080-2095 top side. Otherwise the next dip will be really really dangerous! Why? Simply because due to this longer range consolidation the Kumo has become not just thin, but kind of "non existing". That means if by some reason the next selloff hits SP500, the Kumo will not provide any support, it could be easily broken. Then the lower level of the range will have no relevance any more, as that could protect the index against selloffs before only due to the thick Kumo support.
Greece and Ukraine will be critical in coming days / weeks for equity markets. A negative outcome can be a real game changer and cause a lot of harm.
- Ichimoku setup remains bullish until Price trades above Kumo and Kijun Sen. Please note that Kijun Sen is at same level with Senkou B around 1955. This is the first very important support. There is one more important support at 1910. Real problem and trend reversal would start only below 1910 and especilly below 1840.
- HA candles have been confusing since early december. 2 red, 2 green, 2 red, 2 doji, 1 green. This is still a sideaway consolidation, but with revent candle being green and haDelta/SMA3 crossing back above zero line the bias is mor bullish again.
Daily:
- With price slowly back above Kumo it looks bullish biased again on the daily timeframe too. However looking at Ichimoku averages it is still clear SP500 is in consolidation. All lines (Tenkan, Kijun, Senkou A and Senkou B) are absolutely flat at 2030, with no direction. Price has been swingin around this 2030 equilibrium. not surprising that Chikou Span shows no directional indication either. That is also swinging around Price candles.
- Heiken Ashi candles are green in a row, haDelta and the Oscillator points bullish.
All in all it looks more bullish again, but in fact it is still rangebound. For Bulls to really get back in power Price should break 2080-2095 top side. Otherwise the next dip will be really really dangerous! Why? Simply because due to this longer range consolidation the Kumo has become not just thin, but kind of "non existing". That means if by some reason the next selloff hits SP500, the Kumo will not provide any support, it could be easily broken. Then the lower level of the range will have no relevance any more, as that could protect the index against selloffs before only due to the thick Kumo support.
Greece and Ukraine will be critical in coming days / weeks for equity markets. A negative outcome can be a real game changer and cause a lot of harm.