The following remark was made in last week's post on the daily bar chart pattern of S&P 500: "The 2400 level has been tested twice in 8 trading sessions, and may get breached soon."
On Tue. May 9, the index touched a new intra-day high of 2404, but closed 3 points below the previous day's closing level of 2399 - forming a 'reversal day' bar (higher high, lower close) that triggered a correction.
The index received good support from its rising 20 day EMA, and bounced up to close above 2390 - losing 8 points on a weekly closing basis.
Daily technical indicators are in bullish zones, but showing downward momentum. All three are showing negative divergences by failing to touch new highs with the index.
Some more correction or consolidation is likely before a convincing break out above 2400 can occur.
On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are showing negative divergences and looking overbought.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 faced resistance from the (purple) down trend line on Tue. May 9 but broke out above the trend line on the following day. (The possibility was mentioned in last week's post.)
The index rallied past the 7400 level on Fri. May 12 and closed at 7435 - with a 1.9% gain for the week. The 7 weeks long down trend has ended. A test of the Mar 17 top of 7447 is likely.
Daily technical indicators are in bullish zones and showing upward momentum. Slow stochastic is well inside its overbought zone, and can trigger a pullback towards 7400.
The index is trading above its three EMAs in a bull market. A convincing move above 7450 will put bulls back in the driver's seat.
On longer term weekly chart (not shown), the index closed well above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones and showing upward momentum.