Monday, June 19, 2017

S&P 500 and FTSE 100 charts (Jun 16 '17): tug-of-war between bulls and bears continues

S&P 500 index chart pattern


The daily bar chart pattern of S&P 500 consolidated sideways within a 25 points range during the week. 

The index touched a slightly lower top of 2444 on Wed. Jun 7. The rising 20 day EMA prevented a fall below the Jun 9 low of 2416.

The large volume spurt on Fri. Jun 16 ensured a flat close for the week. Neither bulls nor bears managed to wrest any advantage.

Daily technical indicators are in bullish zones, but not showing any upward momentum. RSI is moving sideways. MACD and Slow stochastic are displaying a bit of downward momentum.

The index continues to trade above its three rising EMAs in a bull market. Some more consolidation is possible before the index decides to move higher.

(On the daily closing chart - not shown - the index has been consolidating since the beginning of June within a narrow 'rectangle' pattern between 2429 and 2440. A breakout from the 'rectangle' can occur in either direction.)

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 looking overbought, but not showing any upward momentum.

FTSE 100 index chart pattern


The daily bar chart pattern of FTSE 100 had touched a new high of 7599 on Jun 2 before breaking out below a bearish 'rising wedge' pattern (refer last week's post).

The index has formed a bearish pattern of 'lower tops, lower bottoms' since then. FTSE dropped sharply below its 50 day EMA to a low of 7378 on Thu. Jun 15, followed by a pullback to its 20 day EMA but closed about 0.8% lower for the week.

(At the time of writing this post, the index has bounced up above its three EMAs - regaining most of its previous week's loss. However, the bearish pattern of 'lower tops, lower bottoms' is intact.)

Daily technical indicators are giving mixed signals. MACD is below its falling signal line in bullish zone. RSI has moved above its 50% level after falling below it.  Slow stochastic has bounced up from the edge of its oversold zone but remains below its 50% level.

Expect the tug-of-war between bulls and bears to continue a little longer before one side can wrest the advantage.

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones, but not showing any upward momentum.

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