FX.co ★ Ichimoku cloud indicator analysis on SPX for October 27th, 2023.

SPX is trading around 4,148. Short-term trend remains bearish as price is still below the Kumo (cloud) in the Daily chart. In previous posts we warned bulls that the Ichimoku cloud indicator suggested that price would continue lower to new lower lows. The index remains well below both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). The Chikou span (black line indicator) remains below the candlestick pattern (bearish). Technically SPX continues making lower lows and lower highs confirming that we remain in a bearish short-term trend since the July highs. The only positive sign for bulls is the bullish RSI divergence. However this is only an indication and not a reversal signal.