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Monday, June 1, 2015

Stock Index Chart Patterns: S&P 500 and FTSE 100 – May 29, 2015

S&P 500 Index Chart



The daily bar chart pattern of S&P 500 oscillated about its 20 day EMA, received good support from its rising 50 day EMA; but closed below its 20 day EMA in a holiday-shortened trading week. The index lost about 1% on a weekly closing basis.

Strong volumes on Fri. May 29, which was a down day, may be a sign of 'distribution'. The index is trading above its 50 day EMA and well above its 200 day EMA, so there is no immediate threat to the bull market.

However, daily technical indicators are showing downward momentum, and beginning to turn bearish. MACD has crossed below its signal line in positive zone. RSI has slipped below its 50% level. Slow stochastic has dropped from its overbought zone, and is falling towards its 50% level.

Some more correction can not be ruled out.

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones, but showing a bit of downward momentum.

FTSE 100 Index Chart



The daily bar chart pattern of FTSE 100 corrected below its 20 day and 50 day EMAs and the 6950 level on Tue. May 26. It rallied during the next two days, but on decreasing volumes. On Fri. May 29, the index touched its week's high of 7070, but formed a 'reversal day' bar and closed below its 20 day EMA and the 7000 level.

Strong volumes (not shown on chart) on Fri. is probably a sign of 'distribution' from stronger to weaker hands. At the time of writing this post, the index has regained the 7000 level and is trading above its three EMAs in a bull market.

Daily technical indicators are giving mixed signals. MACD is touching its signal line in positive zone. RSI is trying to find support from its 50% level. Slow stochastic is falling towards its 50% level.

Expect some consolidation before the index can breakout in either direction.

On longer term weekly chart (not shown), the index is trading above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones, but showing downward momentum.

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