Monday, January 4, 2016

Stock Index Chart Patterns: S&P 500 and FTSE 100 – Dec 31, 2015

S&P 500 Index Chart

Trading activity was expectedly at a low ebb in the last trading week of the year. The daily bar chart pattern of S&P 500 tested the support/resistance level of 2080, but dropped down to seek support from its 200 day EMA.

The index has been in a downtrend since touching its Nov 3 '15 top of 2116, and has formed a bearish pattern of 'lower tops and lower bottoms'.

Daily technical indicators are turning bearish. MACD failed to enter positive territory, and is turning down towards its rising signal line. RSI has slipped below its 50% level. Slow stochastic has dropped from its overbought zone.

The index may once again fall down into bear territory - below its three daily EMAs.

On longer term weekly chart (not shown), the index closed at its 20 week EMA, but above its 50 week and 200 week EMAs in a long-term bull market. Weekly MACD and RSI are in neutral zones, but Slow stochastic is in bullish zone and showing slight upward momentum.

FTSE 100 Index Chart

In a truncated trading week due to New Year holiday, the daily bar chart pattern of FTSE 100 climbed above the 6300 level, but dropped down to seek support from its 50 day EMA.

The index is trading nearly 200 points below its falling 200 day EMA in a bear market.

Daily technical indicators are giving mixed signals. MACD is rising towards its positive zone, but has failed to enter it. RSI is sliding down towards its 50% level. Slow stochastic is well inside its overbought zone, and beginning to turn down.

The index is expected to fall down below its 50 day and 20 day EMAs. 

On longer term weekly chart (not shown), the index faced resistance from its falling 20 week EMA, and closed below all three weekly EMAs in a long-term bear market. Weekly MACD is inside its oversold zone, but showing some upward momentum. RSI and Slow stochastic are in neutral zones.

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