- Ichimoku setup is bullish, but price got too quickly too far above Kijun Sen (a bit overbought)
- Heikin-Ashi signals a pause and a possible local top (Not yet bearish)
Warning signals:
- If market is unable to gain more momentum and recapture 7000+, then it will likely set up a major Head and Shoulders pattern. After so many years of strong bullish run, this would be an extremely bearish indication.
- Equilibrium price marked by a flat thin forward Kumo and Kijun sen is at 6740. Next support is 6600. A break below these levels and below the major trendline would open space for a deeper correction to target the monthly Kijun Sen (26 months avg) level at 5690.
- EWO has swinged a couple of times around zero, but since the January extreme high it seems to be printing lower highs only, which is kind of a negative momentum divergence.
Strategy: Buy 6 months Put spreads. Also if you are long, time to get out or buy some protection.
- Heikin-Ashi signals a pause and a possible local top (Not yet bearish)
Warning signals:
- If market is unable to gain more momentum and recapture 7000+, then it will likely set up a major Head and Shoulders pattern. After so many years of strong bullish run, this would be an extremely bearish indication.
- Equilibrium price marked by a flat thin forward Kumo and Kijun sen is at 6740. Next support is 6600. A break below these levels and below the major trendline would open space for a deeper correction to target the monthly Kijun Sen (26 months avg) level at 5690.
- EWO has swinged a couple of times around zero, but since the January extreme high it seems to be printing lower highs only, which is kind of a negative momentum divergence.
Strategy: Buy 6 months Put spreads. Also if you are long, time to get out or buy some protection.