S&P 500 index chart pattern
The daily bar chart pattern of S&P 500 swept aside all bearish technical signals as it soared to close at a new lifetime high of 2552 on Thu. Oct 5.
The index closed just below 2550 on Fri. Oct 6 - gaining 30 points (1.2%) on a weekly closing basis.
The index is trading well above its three rising EMAs in a bull market, but the last leg of the rally beyond 2510 has been accompanied by sliding volumes. Volume support is required to sustain a bull rally.
All three daily technical indicators are inside their respective overbought zones. The index looks ripe for a correction or some consolidation. The zone between 2490 & 2510 should provide good support.
Any dip towards the support zone will provide a buying opportunity.
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 in their overbought zones. MACD and RSI are showing negative divergences by failing to touch new highs with the index.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 shows that the 4 months long down trend (marked by down trend line DTL 1) from the Jun '17 top was convincingly breached on Mon. Oct 2.
The index rallied to close above 7500 on Fri. Oct 6 - gaining 150 points (2%) on a weekly closing basis. A second down trend line (marked DTL 2) connecting the Jun '17 and Aug '17 tops was also breached in the process.
FTSE is trading above its three rising EMAs in a bull market. The Aug 8 top of 7552 is the next hurdle that the bulls need to cross before they can regain full control of the chart.
Daily technical indicators are looking bullish but overbought. A pullback towards 7475 may be in the offing. The dip can be used to buy.
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 looking bullish, and showing upward momentum.
The daily bar chart pattern of S&P 500 swept aside all bearish technical signals as it soared to close at a new lifetime high of 2552 on Thu. Oct 5.
The index closed just below 2550 on Fri. Oct 6 - gaining 30 points (1.2%) on a weekly closing basis.
The index is trading well above its three rising EMAs in a bull market, but the last leg of the rally beyond 2510 has been accompanied by sliding volumes. Volume support is required to sustain a bull rally.
All three daily technical indicators are inside their respective overbought zones. The index looks ripe for a correction or some consolidation. The zone between 2490 & 2510 should provide good support.
Any dip towards the support zone will provide a buying opportunity.
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 in their overbought zones. MACD and RSI are showing negative divergences by failing to touch new highs with the index.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 shows that the 4 months long down trend (marked by down trend line DTL 1) from the Jun '17 top was convincingly breached on Mon. Oct 2.
The index rallied to close above 7500 on Fri. Oct 6 - gaining 150 points (2%) on a weekly closing basis. A second down trend line (marked DTL 2) connecting the Jun '17 and Aug '17 tops was also breached in the process.
FTSE is trading above its three rising EMAs in a bull market. The Aug 8 top of 7552 is the next hurdle that the bulls need to cross before they can regain full control of the chart.
Daily technical indicators are looking bullish but overbought. A pullback towards 7475 may be in the offing. The dip can be used to buy.
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 looking bullish, and showing upward momentum.
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