S&P 500 index chart pattern
The daily bar chart pattern of S&P 500 didn't stay below the (purple) down trend line for very long. On Tue. Nov 21, the index crossed above the trend line with an upward 'gap' that forced bears to retreat once again.
On Fri. Nov 24, the index touched an intra-day high of 2604, and closed above the 2600 level for the first time - gaining 0.9% on a weekly closing basis.
Daily technical indicators are looking bullish. MACD is about to cross above its signal line and re-enter its overbought zone. RSI has bounced up after receiving support from its 50% level, and is moving up towards its overbought zone. Slow stochastic has entered its overbought zone.
Note that all three indicators are showing negative divergences by failing to touch new highs with the index. A pullback towards the down trend line is a possibility.
The index is trading above its three rising EMAs in a bull market, and is climbing a wall of technical worries. That is what bull markets do.
Profit booking often ensues when an index touches a new high. So, remain circumspect, maintain a trailing stop-loss and enjoy the bull ride.
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 overbought and can trigger a correction.
FTSE 100 index chart pattern
The following comment was made in last week's post on the daily bar chart pattern of FTSE 100: "..an oversold Slow stochastic can also trigger a pullback towards the (purple) down trend line."
The index bounced up after receiving support from the 7350 level on Mon. Nov 20. On Wed. Nov 22, the index climbed above its falling 20 day and 50 day EMAs, the (purple) down trend line and the 7460 level intra-day, but faced selling pressure and closed below 7420.
A bearish 'shooting star' candlestick pattern got formed. It triggered a sideways consolidation with a downward bias. The index eked out a 0.4% gain on a weekly closing basis, and remained in bull territory above its 200 day EMA.
Daily technical indicators are looking bearish, and showing slight downward momentum. The (purple) down trend line continues to dominate the chart - as it has done for almost 6 months.
On longer term weekly chart (not shown), the index closed just below its 20 week EMA but above its 50 week and 200 week EMAs in a long-term bull market. Weekly MACD is sliding below its signal line in bullish zone. RSI and Slow stochastic are seeking support from their respective 50% levels.
The daily bar chart pattern of S&P 500 didn't stay below the (purple) down trend line for very long. On Tue. Nov 21, the index crossed above the trend line with an upward 'gap' that forced bears to retreat once again.
On Fri. Nov 24, the index touched an intra-day high of 2604, and closed above the 2600 level for the first time - gaining 0.9% on a weekly closing basis.
Daily technical indicators are looking bullish. MACD is about to cross above its signal line and re-enter its overbought zone. RSI has bounced up after receiving support from its 50% level, and is moving up towards its overbought zone. Slow stochastic has entered its overbought zone.
Note that all three indicators are showing negative divergences by failing to touch new highs with the index. A pullback towards the down trend line is a possibility.
The index is trading above its three rising EMAs in a bull market, and is climbing a wall of technical worries. That is what bull markets do.
Profit booking often ensues when an index touches a new high. So, remain circumspect, maintain a trailing stop-loss and enjoy the bull ride.
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 overbought and can trigger a correction.
FTSE 100 index chart pattern
The following comment was made in last week's post on the daily bar chart pattern of FTSE 100: "..an oversold Slow stochastic can also trigger a pullback towards the (purple) down trend line."
The index bounced up after receiving support from the 7350 level on Mon. Nov 20. On Wed. Nov 22, the index climbed above its falling 20 day and 50 day EMAs, the (purple) down trend line and the 7460 level intra-day, but faced selling pressure and closed below 7420.
A bearish 'shooting star' candlestick pattern got formed. It triggered a sideways consolidation with a downward bias. The index eked out a 0.4% gain on a weekly closing basis, and remained in bull territory above its 200 day EMA.
Daily technical indicators are looking bearish, and showing slight downward momentum. The (purple) down trend line continues to dominate the chart - as it has done for almost 6 months.
On longer term weekly chart (not shown), the index closed just below its 20 week EMA but above its 50 week and 200 week EMAs in a long-term bull market. Weekly MACD is sliding below its signal line in bullish zone. RSI and Slow stochastic are seeking support from their respective 50% levels.
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