S&P 500 index chart pattern
The following remarks were made in last week's post on the daily bar chart pattern of S&P 500: "Negative divergences visible on RSI and Slow stochastic (both failed to touch new highs with the index) can lead to another corrective dip."
The index formed an upward 'gap' and touched a new high of 2695 on Mon. Dec 18. Negative divergences visible on RSI and Slow stochastic led to a dip down to a low of 2676, which filled the 'gap' on Wed. Dec 20.
Bulls bought the dip - as they have been doing repeatedly during the past year's relentless rally. The index is trading well above its three rising EMAs in a bull market, and closed with a weekly gain of 0.3%.
There is a possibility that the 'gap' formed on Mon. Dec 18 was an 'exhaustion gap' - as it was preceded by a sharp surge in volumes. A deeper correction may follow.
Daily technical indicators are looking overbought, and showing slight downward momentum.
On longer term weekly chart (not shown), the index touched a new high and closed well above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are looking overbought. Slow stochastic is showing negative divergence by failing to touch a new high with the index.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 finally reversed the previous 7 months' down trend. The index closed at a 52 week high of 7604 on Thu. Dec 21, and has formed a bullish pattern of 'higher top, higher bottom' from its Sep '17 low.
On Fri. Dec 22, the index rose 10 points higher but closed lower to form a small 'reversal day' bar, but trading volume (not shown) was significantly lower before the long X'mas weekend.
Daily technical indicators are in bullish zones. Slow stochastic is inside its overbought zone, and can trigger some consolidation or correction.
On longer term weekly chart (not shown), the index touched a 3 year high and closed above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones but showing negative divergences by failing to touch new highs.
(Wishing all blog followers, visitors, subscribers, twitter followers Season's Greetings and a very happy and prosperous New Year.)
The following remarks were made in last week's post on the daily bar chart pattern of S&P 500: "Negative divergences visible on RSI and Slow stochastic (both failed to touch new highs with the index) can lead to another corrective dip."
The index formed an upward 'gap' and touched a new high of 2695 on Mon. Dec 18. Negative divergences visible on RSI and Slow stochastic led to a dip down to a low of 2676, which filled the 'gap' on Wed. Dec 20.
Bulls bought the dip - as they have been doing repeatedly during the past year's relentless rally. The index is trading well above its three rising EMAs in a bull market, and closed with a weekly gain of 0.3%.
There is a possibility that the 'gap' formed on Mon. Dec 18 was an 'exhaustion gap' - as it was preceded by a sharp surge in volumes. A deeper correction may follow.
Daily technical indicators are looking overbought, and showing slight downward momentum.
On longer term weekly chart (not shown), the index touched a new high and closed well above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are looking overbought. Slow stochastic is showing negative divergence by failing to touch a new high with the index.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 finally reversed the previous 7 months' down trend. The index closed at a 52 week high of 7604 on Thu. Dec 21, and has formed a bullish pattern of 'higher top, higher bottom' from its Sep '17 low.
On Fri. Dec 22, the index rose 10 points higher but closed lower to form a small 'reversal day' bar, but trading volume (not shown) was significantly lower before the long X'mas weekend.
Daily technical indicators are in bullish zones. Slow stochastic is inside its overbought zone, and can trigger some consolidation or correction.
On longer term weekly chart (not shown), the index touched a 3 year high and closed above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones but showing negative divergences by failing to touch new highs.
(Wishing all blog followers, visitors, subscribers, twitter followers Season's Greetings and a very happy and prosperous New Year.)
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