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Sunday, November 22, 2015

Stock Index Chart Patterns: S&P 500 and FTSE 100 – Nov 20, 2015

S&P 500 Index Chart

S&P 500_Nov2015

The daily bar chart pattern of S&P 500 shows a spirited fight back by bulls, just when it seemed that bears were getting the upper hand.

The index is trading above all three EMAs in bull territory. The ‘golden cross’ of the 50 day EMA above the 200 day EMA has technically confirmed the end of the bear phase.

Bears are not yet ready to go into hibernation. Volumes on Tue. Nov 17 – a down day – were the highest during the week. It won’t be a surprise if bears try to sell the rally again.

All three technical indicators are in bullish zones. Upward momentum on MACD and RSI looks weak. Slow stochastic is showing strong upward momentum.

On longer term weekly chart (not shown), bulls battled hard to push the bears back. The index jumped up to close well above its three weekly EMAs in a long-term bull market. Weekly technical indicators are looking bullish.

FTSE 100 Index Chart

FTSE_Nov2015

After briefly slipping below the 6100 level, the daily bar chart pattern of FTSE 100 rallied above its 20 day and 50 day EMAs and gained 3.5% on a weekly closing basis.

However, the 200 day EMA is still sliding down, and the index is trading below it in a bear market. The possibility of another bear onslaught can’t be ruled out.

Daily technical indicators are showing some upward momentum. RSI and Slow stochastic have crossed above their respective 50% levels. MACD is trying to emerge from its negative zone.

On longer term weekly chart (not shown), the index pulled back towards its 200 week EMA, but failed to cross above it. The 20 week EMA is about to cross below the 200 week EMA. The ‘death cross’ of the 50 week EMA below the 200 week EMA will technically confirm of a long-term bear market. Weekly MACD and RSI are still in bearish zones. Slow stochastic bounced up after receiving support from its 50% level.

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