S&P 500 index chart pattern
The following comments from last week's post on the daily bar chart pattern of S&P 500 are worth noting:
"The index touched an intra-day low of 2741 on Thu. Mar 15, but bounced up to close just above the 2750 level on Fri. Mar 16 - forming an 'inverted hammer' candlestick. The accompanying volume surge is often a sign of trend reversal."
Fears of a trade war with China gave an extra impetus to bears. The index opened trading with a downward 'gap' on Mon. Mar 19 and dropped sharply below its 20 day and 50 day EMAs. That was a signal for bulls to run for cover.
Two days of sideways consolidation was followed by another sharp fall with a downward 'gap' on Thu. Mar 22. The index closed below its previous (Mar 2) low of 2647 - hinting that worse was to follow.
It did. On Fri. Mar 23, the index fell steeply with strong accompanying volume and closed below its rising 200 day EMA for the first time since Nov '16. The large 'symmetrical triangle' drawn last week has been modified to a more appropriate 'rising wedge' pattern.
Daily technical indicators are showing downward momentum in bearish zones, and looking oversold. A technical bounce is a possibility. However, bears are likely to adopt a 'sell on rise' approach to maintain dominance.
On longer term weekly chart (not shown), the index dropped to seek support from its 50 week EMA, and closed well above its 200 week EMA in a long-term bull market. Weekly technical indicators are looking bearish and showing downward momentum.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 is falling deeper into bear territory. The index convincingly breached the long-term 'support/resistance' level of 7100, and the small 'double bottom' pattern formed last month.
All three EMAs are falling, and the index is trading below them in a bear market. The 'death cross' (marked by blue circle) of the 50 day EMA below the 200 day EMA had technically confirmed a bear market.
Daily technical indicators are showing downward momentum in bearish zones. All three are showing positive divergences by touching higher bottoms while the index fell lower.
A technical bounce is possible. Expect bears to use it as a selling opportunity. (At the time of writing this post, the index is trying to pullback to its Aug '16 top of 6955 after closing at 6923 on Fri. Mar 23.)
On longer term weekly chart (not shown), the index bounced up a bit after receiving support from its 200 week EMA, and closed well below its 20 week and 50 week EMAs. The 20 week EMA is about to cross below the 50 week EMA after 20 months. Weekly technical indicators are looking oversold.
The following comments from last week's post on the daily bar chart pattern of S&P 500 are worth noting:
"The index touched an intra-day low of 2741 on Thu. Mar 15, but bounced up to close just above the 2750 level on Fri. Mar 16 - forming an 'inverted hammer' candlestick. The accompanying volume surge is often a sign of trend reversal."
Fears of a trade war with China gave an extra impetus to bears. The index opened trading with a downward 'gap' on Mon. Mar 19 and dropped sharply below its 20 day and 50 day EMAs. That was a signal for bulls to run for cover.
Two days of sideways consolidation was followed by another sharp fall with a downward 'gap' on Thu. Mar 22. The index closed below its previous (Mar 2) low of 2647 - hinting that worse was to follow.
It did. On Fri. Mar 23, the index fell steeply with strong accompanying volume and closed below its rising 200 day EMA for the first time since Nov '16. The large 'symmetrical triangle' drawn last week has been modified to a more appropriate 'rising wedge' pattern.
Daily technical indicators are showing downward momentum in bearish zones, and looking oversold. A technical bounce is a possibility. However, bears are likely to adopt a 'sell on rise' approach to maintain dominance.
On longer term weekly chart (not shown), the index dropped to seek support from its 50 week EMA, and closed well above its 200 week EMA in a long-term bull market. Weekly technical indicators are looking bearish and showing downward momentum.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 is falling deeper into bear territory. The index convincingly breached the long-term 'support/resistance' level of 7100, and the small 'double bottom' pattern formed last month.
All three EMAs are falling, and the index is trading below them in a bear market. The 'death cross' (marked by blue circle) of the 50 day EMA below the 200 day EMA had technically confirmed a bear market.
Daily technical indicators are showing downward momentum in bearish zones. All three are showing positive divergences by touching higher bottoms while the index fell lower.
A technical bounce is possible. Expect bears to use it as a selling opportunity. (At the time of writing this post, the index is trying to pullback to its Aug '16 top of 6955 after closing at 6923 on Fri. Mar 23.)
On longer term weekly chart (not shown), the index bounced up a bit after receiving support from its 200 week EMA, and closed well below its 20 week and 50 week EMAs. The 20 week EMA is about to cross below the 50 week EMA after 20 months. Weekly technical indicators are looking oversold.
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