Ichimoku Market Update: Is the US Stock market bullish again?
Yesterday,a lot of traders are saying the market corrected 3% and now the bullish trend is going to resume. Is this correct?
The charts will reveal the answer to us because that is the only place where trader’s actions are shown.
Below is the Ichimoku Daily chart for the E-Mini SP500 futures provided by thinkorswim from TDAmeritrade.
In the Ichimoku World, if price is below the cloud, the sentiment is bearish. If price is above the cloud, the sentiment is bullish and if price is in the cloud the sentiment is consolidating. 3 days ago, we closed below the cloud. The next day, price remained below the cloud which confirmed the bearish sentiment change. The last time, we went below the cloud was back in October 2014!.
The resistance keeping price below the cloud is 2083.75. Until this resistance is broken, the sentiment for the daily chart will be BEARISH. The upward movement right now is a pull back to try to retest the resistance.
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