Wednesday, 30 June 2010

20:03 BST - SPX Ichimoku Update

This 5 min ichimoku chart illustrates the struggle that SPX has faced today, to overcome resistance and push higher (the flattening of out of the cloud from early on in the session was a sign that the market was likely going to move sideways):

SPX 5 min ichimoku chart:

Although it got through the cloud in the morning, it couldn't take the lagging line (green) with it. So, when price pulled back, the lagging line was unable to stay above the price line, even though it and price were above the cloud.

Now they have both dropped through the cloud and although they are trying to recapture it, the turning line (blue) is now below the standard line (red) and this, as well as the cloud, will act as resistance to price. It doesn't mean it can't get above them, but the odds have turned against it for the time being.