The daily bar chart pattern of S&P 500 is continuing with its gravity-defying act. After soaring past the 2300 level - where it had faced some resistance - the index has paused to catch its breath at 2350.
All three EMAs are rising, and the index is trading above them in a bull market. Bulls are using the slightest of dips to buy. However, the widening distance between the index and its 200 day EMA is a red flag.
Daily technical indicators are well inside their overbought zones. A similar occurrence two months back had triggered a 2% correction.
On longer term weekly chart (not shown), the index closed at a new lifetime high of 2351, and is trading well above its three weekly EMAs in a long-term bull market. All three weekly technical indicators are inside their overbought zones.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 shook off a strong bear attack and climbed 200 points in two weeks. It is facing some resistance at the 7300 level.
Daily technical indicators are in bullish zones, but not showing much upward momentum. Slow stochastic is inside its overbought zone, and can trigger a correction.
Expect bulls to buy any dip. The index should cross above its previous top (7354 touched on Jan 16 '17) in the near future.
On longer term weekly chart (not shown), the index has closed well above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones but looking overbought.