SP500 - Update. Can we go Short? "Yes, we can!"
First we look at 4 Hrs chart now: Price broke the Kumo on downside, but quickly retested it on the next candle.
(The price action looks like a Kumo retest on 1 Hr as well).
Let me call your attention again for the basic rule, that according to Kumo breakout strategy the trend reversal on any time frame can be confirmed only with clearing the previous key support/resistance. So in fact it looks bearish now together with the daily chart (Slow Stoch, MACD and now also DMI more bearish) and it is time to open 1 Unit Short outright, but the corrective counter trend on 4 Hrs can accelerate only with penetration of the support lines. The higher one at 1951 is more important, since that is in line with Daily Kijun Sen, so a close belo would mean a bearish Kijun Cross on the Daily too.
I sold 1 trade unit here (may size up later). Risk-reward for the trade is about 1:3 (as marked on 4 Hrs chart)
p.s.: front end of VIX futures picking up and despite the hammer down from 13,35 daily high, it remained well bid ard 12,70. Volatility is picking up. Also VIX Calls getting more expensive, so volatility index is geting more volatile too.
(The price action looks like a Kumo retest on 1 Hr as well).
Let me call your attention again for the basic rule, that according to Kumo breakout strategy the trend reversal on any time frame can be confirmed only with clearing the previous key support/resistance. So in fact it looks bearish now together with the daily chart (Slow Stoch, MACD and now also DMI more bearish) and it is time to open 1 Unit Short outright, but the corrective counter trend on 4 Hrs can accelerate only with penetration of the support lines. The higher one at 1951 is more important, since that is in line with Daily Kijun Sen, so a close belo would mean a bearish Kijun Cross on the Daily too.
I sold 1 trade unit here (may size up later). Risk-reward for the trade is about 1:3 (as marked on 4 Hrs chart)
p.s.: front end of VIX futures picking up and despite the hammer down from 13,35 daily high, it remained well bid ard 12,70. Volatility is picking up. Also VIX Calls getting more expensive, so volatility index is geting more volatile too.