S&P 500 index chart pattern
The daily bar chart pattern of S&P 500 continued to defy gravity as it rose to touch a new high of 2558 on Fri. Oct 13 before eking out a 4 point gain on a weekly closing basis.
The previous 7 days' trading appears to have formed a small bearish 'rising wedge' pattern. Volumes were strongest on Thu., which was a down day. Smart money may be moving out.
All three daily technical indicators are inside their overbought zones, and showing negative divergences by failing to touch new highs with the index. While an index can remain overbought for long periods, a correction or consolidation may be around the corner.
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, but not showing any downward momentum.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 pulled back to the (purple) down trend line on Mon. Oct 9 before bouncing up to touch a high of 7565 on Thu. Oct 12.
However, the index is struggling to move above its previous (Aug 8) top of 7552 in a convincing manner - leaving the door open for another pullback towards the down trend line, or, a bit of sideways consolidation.
The index is trading above its three rising EMAs in a bull market. Daily technical indicators are looking overbought, and not showing much upward momentum.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market. Weekly MACD and RSI are looking bullish. Slow stochastic is inside its overbought zone, and can trigger a correction.
The daily bar chart pattern of S&P 500 continued to defy gravity as it rose to touch a new high of 2558 on Fri. Oct 13 before eking out a 4 point gain on a weekly closing basis.
The previous 7 days' trading appears to have formed a small bearish 'rising wedge' pattern. Volumes were strongest on Thu., which was a down day. Smart money may be moving out.
All three daily technical indicators are inside their overbought zones, and showing negative divergences by failing to touch new highs with the index. While an index can remain overbought for long periods, a correction or consolidation may be around the corner.
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, but not showing any downward momentum.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 pulled back to the (purple) down trend line on Mon. Oct 9 before bouncing up to touch a high of 7565 on Thu. Oct 12.
However, the index is struggling to move above its previous (Aug 8) top of 7552 in a convincing manner - leaving the door open for another pullback towards the down trend line, or, a bit of sideways consolidation.
The index is trading above its three rising EMAs in a bull market. Daily technical indicators are looking overbought, and not showing much upward momentum.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market. Weekly MACD and RSI are looking bullish. Slow stochastic is inside its overbought zone, and can trigger a correction.
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