Friday 18 January 2013

Flying above the clouds

With the indexes higher yet again, and taking out the important sp'1474 high from last September, the market really is starting to fly now. There is plenty of empty air into the low/mid sp'1500s, and even the looming threat of another debt ceiling argument doesn't seem to be bothering Mr Market anymore.

Lets take a rare look at the SP'500, from above the Ichimoku clouds.


sp'daily8, 1yr



sp'monthly7, 10yr


Summary

I should note, I post the above charts merely as a curiosity than anything else. I occasionally see other posters highlight the Ichimoku cloud charts, but its not something I am at all well versed in.

The monthly chart is somewhat more interesting, in that is does show how there was ample warning of 'trouble ahead', when the cloud was first pierced in July 2008.

You can see that right now, the cloud is way down around sp'1125.

So, in theory..even a very large 20% market fall of 300pts would NOT break into the cloud..and cause any major bearish warnings to trigger.

We are in an incredibly strong market, one that is able to sustain a major 20% decline..and still be outright bullish!

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*market is closed on Monday, so we have a long 3 day weekend ahead.

Goodnight from London