Market is still bearish: heavy price action, increased volatility, long term deterioration. However technically the bearish momentum may slow down a bit and we can see some rather choppy consolidation in the thick daily Kumo before the next major leg... likely down
Daily:
- Price as a falling knife dropped into the thick Kumo: Check what has stopped the move! It reached Kumo bottom by tick! Of course machines know about averages too :-). As you see Ichimoku and Heikin Ashi is powerful in the HFT machines world too, as the machines were designed and programmed by human.
- Price is located in a thick Kumo, below Kijun and 100 WMA. Future Senkou lines (future Kumo) are narrowing. As you see the black horizontal line represents short term equilibrium around 2033.
The lower key level is 1993, the upper supp/res is around 2050-2060 (marked by Kijun and Kumo top)
- Heikin-Ashi is bearish, but watch out, as haDelta has reached a low yesterday, when price tagged Kumo.
- EWO is bearish too.
4H:
- Ichimoku is bearish
- Heikin-Ashi is harder to read (mkt very volatile), but right now, short term it is less bearish, more like consolidation.If haDelta/SMA3 stays above zero, then correction can extend towards 2040 or 2050. If instead of continuing up from here mkt sells off again, then we must see if mkt makes a higher or lower low.
- EWO is bearish
Year end is going to be illiquid. Everyone is telling you lot depends on FED action and communication, but what exactly? I think there is only one question: can day avoid an imminent breakdown of 1993 support and a collapse now? Can they lift market back up to 2060 or 2080? Because I really believe, that later in 2016 market will go more bearish, regardless FED action. However short term I think it is wise to reduce a bit shorts, or at least trail stops, as we'll probably see higher levels to re-enter again.
Daily:
- Price as a falling knife dropped into the thick Kumo: Check what has stopped the move! It reached Kumo bottom by tick! Of course machines know about averages too :-). As you see Ichimoku and Heikin Ashi is powerful in the HFT machines world too, as the machines were designed and programmed by human.
- Price is located in a thick Kumo, below Kijun and 100 WMA. Future Senkou lines (future Kumo) are narrowing. As you see the black horizontal line represents short term equilibrium around 2033.
The lower key level is 1993, the upper supp/res is around 2050-2060 (marked by Kijun and Kumo top)
- Heikin-Ashi is bearish, but watch out, as haDelta has reached a low yesterday, when price tagged Kumo.
- EWO is bearish too.
4H:
- Ichimoku is bearish
- Heikin-Ashi is harder to read (mkt very volatile), but right now, short term it is less bearish, more like consolidation.If haDelta/SMA3 stays above zero, then correction can extend towards 2040 or 2050. If instead of continuing up from here mkt sells off again, then we must see if mkt makes a higher or lower low.
- EWO is bearish
Year end is going to be illiquid. Everyone is telling you lot depends on FED action and communication, but what exactly? I think there is only one question: can day avoid an imminent breakdown of 1993 support and a collapse now? Can they lift market back up to 2060 or 2080? Because I really believe, that later in 2016 market will go more bearish, regardless FED action. However short term I think it is wise to reduce a bit shorts, or at least trail stops, as we'll probably see higher levels to re-enter again.