Ichimoku Executive Summary of US Stock markets

Ichimoku Executive Summary of US Stock markets.  We are almost half way through August and the markets are still at the high.   The question everyone is asking is “Are we going to break the high” or go through a major pull back.

Let’s look at the technical charts and determine what they say.

All charts are provided by eSignal.

Below is the daily chart for the E-mini SP500.   The chart is showing we are “slowly” going higher with no signs of a pull back.    The major support is 2125.00 and resistance is 2207.25.  Let’s examine the lower time frame to see what is going on.

2016-08-10_081725_es_daily

 

Here is the monthly seasonal chart provided by www.alerttrades.com.  It indicates there is no real high probability towards bullish or bearish this month.   You have an predication of an average move of 5.1% with a draw down of 1.1%.   The reward/risk is good but the probabilities aren’t.

2016-08-10_085311_es_seasaonl

 

Below is the 60m time frame.   It shows that a mini consolidation pattern is occurring between 2175.75 and 2183.50.    A iMTF™ support at 2178.50 has developed which is now critical for the bullish momentum.   As long as this support holds, we will continue to go higher without a major pull back.    With this iMTF™ support, there is now a high probability to get to the top of the consolidation pattern and break it too.

2016-08-10_081725_es_60

Below is the weekly time frame for the Nasdaq futures.   It shows we broke the top of the consolidation pattern yesterday by closing above 4740.75.   Today will be a critical week in that, price needs to continue to close above this support level as a confirmation.   If the confirmation occurs, the next major resistance is 4975.75.

2016-08-10_nasdaq_daily

 

Here is the monthly seasonal chart provided by www.alerttrades.com. It shows almost the same as the E-MIni Sp500 futures.

2016-08-10_085311_nq_seasaonl

Below is the 60m time frame.  There is a small consolidation pattern between 4787.00 and 4807.75 with a major iMTF™ support at 4792.75.   As long as the iMTF™ support hold, we have a high probability of reaching the top of the consolidation pattern and break it.

2016-08-10_nasdaq_60

 

Below is the weekly chart for Russell Futures.  We broke the resistance at 1720.50 and trying to the next major resistance at 1754.75.

2016-08-10_tf_daily

 

Below is the 60m chart.  The 60m shows it is also consolidating in a small consolidation pattern of 1227.00 and 1232.00 with a iMTF™ major support at 1229.75.    As long as this major support hold, there is a high probability of reaching the top of the consolidation pattern and breaking it.

2016-08-10_tf_60

 

Now, we will discuss the $VIX which has an inverse relationship with the US Stock markets.  Below is the weekly chart.  It is an over sold condition because it is below the major support of 12.77.    Note, things can remain in an over sold condition for awhile so it doesn’t mean we are are about to reverse at all.

If we examine history, there are two support below this level of 12.77.   They are 11.15 (Aug 2015) and 10.34 (July 2014).  We are the first minor support now.   Let’s see what the lower time frames tell us.

2016-08-10_vix_weekly

 

Below is the 60m time frame.  The support/resistances are random across time frame right now since there is no iMTF™.    However, the sentiment is bearish since we are below the cloud and price has to go far up in order to go to a bullish sentiment.

2016-08-10_vix_60m

In summary, we have iMTF™ supports on the E-mini Sp500, Nasdaq, and Russell futures on the 60m.    These supports are giving us a high probability to reach the last high and breaking it.

 

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.

About the Author Manesh Patel