Daily: For the last six days SP500 closed more or less ard 2000. Yesterday candle is a hammer, which is often a good indication for an interim top. Since Ichimoku is absolutely bullish, and Kijun Sen is still far below Price, II do not expect a collapse, but looking at Slow Stoch and MACD, we will likely see a pull back to key supports. First support is 1980, lower and stronger support is 1955.
4 Hrs: DMI started to zig-zag, with ADX below 20. This is a consolidation phase. For both the bull trend to be continued or the corrective counter trend to develope, ADX needs to climb above 20 again.
The price is moving sideaway just above the Kumo and 100 WMA, Chikou Span hit Price candles. Still Ichimoku components point rather flat or up, but the cloud is thin, it wouldn't be hard to break through.
1 Hr: trading ard the Kumo, actually the short term equilibrium price of 2000 is very obvious on this lower time frame. We have a small upward bias still in a form of a small uptrend. Profit taking could accelerate below this trendline and below the horizontal support of 1994.
Strategy: Limit sell 1 Trade Unit at 2007 / Stop Sell 1 trade Unit at 1994 break OCO.
Very important to see a 1 Hr, or rather a 4Hr candle close below closest Key supports
I think mkts are well positionned for the immediate announcement of ECB all-in QE today. My feeling (only a feeling) is that this won't happen... at least not now. They will again stay dovish, but will not deliver, since the latest CPI prints were in line with expectations. For a massive QE program they will need to see really deflationary numbers.
If ECB "disappoints" mkts, then equities will likely see more profit taking, and the Euro will recover much of its recent losses. However even if they deploy a huge monetary easing, rather the European equities would rally from these levels, for US mkts the upside will stay quite limited.
4 Hrs: DMI started to zig-zag, with ADX below 20. This is a consolidation phase. For both the bull trend to be continued or the corrective counter trend to develope, ADX needs to climb above 20 again.
The price is moving sideaway just above the Kumo and 100 WMA, Chikou Span hit Price candles. Still Ichimoku components point rather flat or up, but the cloud is thin, it wouldn't be hard to break through.
1 Hr: trading ard the Kumo, actually the short term equilibrium price of 2000 is very obvious on this lower time frame. We have a small upward bias still in a form of a small uptrend. Profit taking could accelerate below this trendline and below the horizontal support of 1994.
Strategy: Limit sell 1 Trade Unit at 2007 / Stop Sell 1 trade Unit at 1994 break OCO.
Very important to see a 1 Hr, or rather a 4Hr candle close below closest Key supports
I think mkts are well positionned for the immediate announcement of ECB all-in QE today. My feeling (only a feeling) is that this won't happen... at least not now. They will again stay dovish, but will not deliver, since the latest CPI prints were in line with expectations. For a massive QE program they will need to see really deflationary numbers.
If ECB "disappoints" mkts, then equities will likely see more profit taking, and the Euro will recover much of its recent losses. However even if they deploy a huge monetary easing, rather the European equities would rally from these levels, for US mkts the upside will stay quite limited.