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Monday, April 4, 2016

Stock Index Chart Patterns: S&P 500 and FTSE 100 – Apr 01, 2016

S&P 500 index chart


The daily bar chart pattern of S&P 500 continued its rally from the Feb '16 low, and touched a 2016 high of 2075 on Fri. Apr 1. Bulls are sustaining the rally by buying on every dip. 

The 'golden cross' of the 50 day EMA above the 200 day EMA appears imminent. That will technically confirm a return to a bull market.

Daily technical indicators are in their overbought zones, and showing negative divergences by failing to touch new highs with the index.

Some correction or consolidation can be expected.

On longer term weekly chart (not shown), the index closed above its three weekly EMAs for the 4th week in a row. The index is trading more than 240 points above its rising 200 week EMA in a long-term bull market. Weekly technical indicators are showing upward momentum.

FTSE 100 index chart


The daily bar chart pattern of FTSE 100 is struggling to overcome resistance from the 200 day EMA. The index traded sideways during the week, receiving good support from its rising 50 day EMA.

The index may be forming an 'ascending triangle' pattern, from which a likely upward break out can take the index past 6300.

Daily technical indicators are in bullish zones, but showing downward momentum. MACD is falling below its signal line in positive zone. RSI is seeking support from its 50% level. Slow stochastic is falling towards its 50% level.

On longer term weekly chart (not shown), the index closed above its rising 20 week EMA, but is trading below its 50 week and 200 week EMAs in a long-term bear market. Weekly technical indicators are not showing much upward momentum.

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