Indices challenge important TL and cloud resistance levels

SPX

Holding above 2630-2620 is a sign of strength. However inability to break cleanly above 2680-2690 is a sign of weakness. This is portrayed better in the Ichimoku cloud chart. Breaking below 2630 will lead to a move below 2600 with bearish implications for the medium-term.  With 2580 the most probable target, I remain slightly bearish at current levels. A higher low around 2550 would be ideal for the next leg higher….2470 key support level for the longer-term trend. Breaking below it will increase dramatically the chances for a new low towards 2200-2000.

NASDAQ

Key short-term support at 6600 while I expect a pull back towards 6450 at least. Longer-term bullish scenario gets less chances of success on a break below 6220.

A higher high now will only add to the RSI bearish divergence. Pull back now is the most probable scenario.

DAX

Time for a pull back here as well as price is sliding on top of the long-term upward sloping support trend line

DAX remains inside the longer-term bearish channel and I expect price to get rejected here.

 

Have a great week people and thank you for taking the time to catch up with my thinking.

 

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