The daily bar chart pattern of S&P 500 quickly jumped above the 2360 hurdle on Tue. Feb 21, but failed to make further progress during the rest of a holiday-shortened week.
All three EMAs are rising, and the index is trading above them in a bull market.
Daily technical indicators are well inside their overbought zones. Though an index can remain overbought for long periods, technically a correction is overdue.
The index seems to be rising on the back of a strong US Dollar and hopes of an economic stimulus by the Trump administration.
On longer term weekly chart (not shown), the index closed at a new lifetime high of 2367, and is trading well above its three rising weekly EMAs in a long-term bull market. All three weekly technical indicators are inside their overbought zones - hinting at a correction.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 touched 7329.56 - a new high for the month - on Mon. Feb 20, but failed to sustain above the 7300 level.
On Fri. Feb 24, the index corrected sharply below its 20 day EMA and the 7200 level before bouncing up to close at its 20 day EMA - losing about 0.8% on a weekly closing basis.
An overbought Slow stochastic may have triggered the brief correction (refer last week's post).
Daily technical indicators are in bullish zones but showing downward momentum. Some more correction or consolidation is possible.
The index appears to be consolidating within a large 'symmetrical triangle' since touching a lifetime high of 7354 on Jan 16 '17. A breakout from the triangle can occur in either direction.
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 a bit overbought.