The SPY's lackluster performance last night has yet again proven the ichimoku charts are true. Last night's price movements show that there is a Kumo (Cloud) breakout, but downwards. Unfortunately there wasn't enough power to get it going upwards or even into the cloud itself.
The Chikou Span which is a 26 day lagging moving average, actually shows that it has triggered historical price, and that is a strong bearish signal. This just means that when market opens later, it is likely to be a bearish downward movement.
The only chance is if buyers were to come back into the market to push prices upwards, in which case it would need to test the resistance which is the bottom line of the cloud itself. Whichever the case, it is unlikely that the SPY being in bearish territory is going to have a huge spike, not especially on e Friday when options are expiring. At $142.66 (closing price last night) there is a buffer of at least USD $3 before it hits the strike price of the pair that I sold for.
In other words, if the market were to trend upwards tonight, I doubt it will have the muscle to move up $3. If the market were to trend downwards instead, I will definitely be looking for a trade to sell. Exciting times! :) Let's see what the market brings to us tonight!
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