SP500 - Far away from a sell, but top consolidation is possible
Daily: Kumo and trendline once again proved to be a strong support for SP500. Price moved up again, by now it is out of the Kumo and reached the previous Key resistance at the all time double top. Slow Stoch has moved to overbought, and even though we know Slow Stoch can stuck high for longer time I still believe we'll see rather a top consolidation, or maybe a minor correction down to 1965-1970, than a further sudden bullish move from here.
The further bullish breakout not impossible, but for confirmation we have to monitor DMI-ADX. That indicator is neutral now. Only shows that the short term bearish move lost it's validity. For a further sustainable bullish move ADX should increase again with DI+ on top of DI-, and Chikou Span should go above Price candles too.
4 Hrs: Ichimoku setup is bullish, but there is some short term negative divergence in Slow Stoch. A pull back is possible now, then we'll see.
Key levels: 1990 on the top, lower levels are: 1975 / 1965 / 1950.
1 Hr: No real danger above 1980. Watch if future Kumo and Kijun stays flat for longer time. Play small counter trend bearish trade only if the Kumo and 1 Hr trend is broken.
1950 will be more and more important for the close furture for bulls. On daily chart Kumo, Kijun Sen and Trend line all catching up to this level, on 4 Hrs chart we have the critical horizontal support and the future Kumo there. Once ever next time it will be penetrated, then the corrction will likely be a lot bigger than only 4 %.
Strategy for now: Watch and wait. Maybe small top hunting, but rather through buying Put options. Outright shorts can be stopped quickly still, so wait for at least a 1 Hr sell signal.
The further bullish breakout not impossible, but for confirmation we have to monitor DMI-ADX. That indicator is neutral now. Only shows that the short term bearish move lost it's validity. For a further sustainable bullish move ADX should increase again with DI+ on top of DI-, and Chikou Span should go above Price candles too.
4 Hrs: Ichimoku setup is bullish, but there is some short term negative divergence in Slow Stoch. A pull back is possible now, then we'll see.
Key levels: 1990 on the top, lower levels are: 1975 / 1965 / 1950.
1 Hr: No real danger above 1980. Watch if future Kumo and Kijun stays flat for longer time. Play small counter trend bearish trade only if the Kumo and 1 Hr trend is broken.
1950 will be more and more important for the close furture for bulls. On daily chart Kumo, Kijun Sen and Trend line all catching up to this level, on 4 Hrs chart we have the critical horizontal support and the future Kumo there. Once ever next time it will be penetrated, then the corrction will likely be a lot bigger than only 4 %.
Strategy for now: Watch and wait. Maybe small top hunting, but rather through buying Put options. Outright shorts can be stopped quickly still, so wait for at least a 1 Hr sell signal.