The cloud is constructed from period highs and lows in the price and projected forward. Above the cloud is bullish, below is bearish. If the price is in the cloud it is where it entered from that counts. A full cross of the cloud is a full transition between bearish and bullish.
We see how we had bearish jitters in may 2006 and only a brief scare earlier this year. What we are seeing now is the worst bearish scare since the 2003 low. The longer term Ichimoku chart (weekly) has the price still above the cloud, so this does still look like a short term correction in the longer term uptrend.
Recent falls occurred right on the bottom edge of the cloud where we would expect resistance. Apart from their objectivity, Ichimoku charts have the advantage of being projected into the future. This tells us we need Footsie to be back above 6,300 to be through the cloud and in the short term bullish zone by the end of October.
