S&P 500 index chart pattern
The daily bar chart pattern of S&P 500 touched another new high of 2597 on Tue. Nov 7, but formed a small 'reversal day' pattern (higher high, slightly lower close).
Negative divergences on daily technical indicators triggered a correction below a bearish 'rising wedge' pattern (the possibility was mentioned in last week's post) that dropped the index below its 20 day EMA and the 2570 level intra-day on Nov 9.
The index pulled back to close at the lower edge of the 'wedge' - forming a bearish 'hanging man' candlestick pattern. The stock closed the week below the 'wedge' but above its three EMAs and the 2580 level, losing just 5 points (0.2%) for the week.
Daily technical indicators are showing downward momentum in bullish zones. Some more correction is possible. Bulls have been 'buying the dips' - so the advantage remains with them.
On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market, but formed a weekly 'reversal bar' (higher high, lower close). Weekly technical indicators are showing signs of correcting from their respective overbought zones.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 touched a 5 months high of 7583 on Tue. Nov 7 but formed a 'reversal day' bar (higher high, lower close) that triggered a sharp correction.
Negative divergences visible on the daily technical indicators (which touched lower tops while the index rose higher) helped the cause of bears. The index closed below its 20 day and 50 day EMAs and the (purple) down trend line - losing 1.7% for the week.
Daily technical indicators are looking bearish. MACD is falling below its signal line in bullish zone. RSI and Slow stochastic are falling in bearish zones. Some more correction is likely.
The index is trading above its rising 200 day EMA. That means the bull market is intact despite the correction.
On longer term weekly chart (not shown), the index received support from its 20 week EMA and closed above its 50 week and 200 week EMAs in a long-term bull market. Weekly MACD and Slow stochastic are showing downward momentum in bullish zones. Weeky RSI is seeking support from its 50% level.
The daily bar chart pattern of S&P 500 touched another new high of 2597 on Tue. Nov 7, but formed a small 'reversal day' pattern (higher high, slightly lower close).
Negative divergences on daily technical indicators triggered a correction below a bearish 'rising wedge' pattern (the possibility was mentioned in last week's post) that dropped the index below its 20 day EMA and the 2570 level intra-day on Nov 9.
The index pulled back to close at the lower edge of the 'wedge' - forming a bearish 'hanging man' candlestick pattern. The stock closed the week below the 'wedge' but above its three EMAs and the 2580 level, losing just 5 points (0.2%) for the week.
Daily technical indicators are showing downward momentum in bullish zones. Some more correction is possible. Bulls have been 'buying the dips' - so the advantage remains with them.
On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market, but formed a weekly 'reversal bar' (higher high, lower close). Weekly technical indicators are showing signs of correcting from their respective overbought zones.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 touched a 5 months high of 7583 on Tue. Nov 7 but formed a 'reversal day' bar (higher high, lower close) that triggered a sharp correction.
Negative divergences visible on the daily technical indicators (which touched lower tops while the index rose higher) helped the cause of bears. The index closed below its 20 day and 50 day EMAs and the (purple) down trend line - losing 1.7% for the week.
Daily technical indicators are looking bearish. MACD is falling below its signal line in bullish zone. RSI and Slow stochastic are falling in bearish zones. Some more correction is likely.
The index is trading above its rising 200 day EMA. That means the bull market is intact despite the correction.
On longer term weekly chart (not shown), the index received support from its 20 week EMA and closed above its 50 week and 200 week EMAs in a long-term bull market. Weekly MACD and Slow stochastic are showing downward momentum in bullish zones. Weeky RSI is seeking support from its 50% level.
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