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: "A technical bounce is a possibility. However, bears are likely to adopt a 'sell on rise' approach to maintain dominance."
After closing below its 200 day EMA for the first time since Nov '16, the index bounced up as expected on Mon. Mar 26 and touched the week's high of 2675 on Tue. Mar 27.
Bears used the opportunity to sell. The index tested support from its 200 day EMA on the next two days, and then bounced up on Thu. Mar 29 - probably on short-covering before the long Easter weekend - to close with a 2% weekly gain.
Note that volume bars on two down-days (Tue. & Wed.) were higher. Bears are unlikely to give up their dominance easily - even though the index managed to close above its 200 day EMA in bull territory through the week.
Daily technical indicators are in bearish zones, and not showing any upward momentum. MACD is below its falling signal line in oversold zone. RSI bounced up after receiving support from the edge of its oversold zone, but stayed below its 50% level. Slow stochastic is inside its oversold zone.
Expect the falling 20 day and 50 day EMAs to provide resistance if the index tries to rally. There is real danger of the index breaching support from its 200 day EMA and falling below its Feb '18 low. That can trigger a deeper correction.
On longer term weekly chart (not shown), the index faced resistance from its 20 week EMA, but closed above its 50 week and 200 week EMAs in a long-term bull market. Weekly technical indicators are looking bearish and showing downward momentum.
FTSE 100 index chart pattern
The following remarks were made in last week's post on the daily bar chart pattern of FTSE 100: "A technical bounce is possible. Expect bears to use it as a selling opportunity."
The index received support from the long-term support level of 6875, and bounced up as expected. It even managed to cross above the 7100 level intra-day on Thu. Mar 29. Bears used the opportunity to sell.
The index closed below 7100 and the falling 20 day EMA, but gained almost 2% on a weekly closing basis.
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 in bearish zones. Only Slow stochastic is showing upward momentum. The index may consolidate within the two 'support/resistance' levels marked on the chart, but the 6875 level is likely to get breached sooner than later.
On longer term weekly chart (not shown), the index bounced up after receiving support from its 200 week EMA, but closed well below its 20 week and 50 week EMAs. The 20 week EMA has crossed below the 50 week EMA after 20 months. Weekly technical indicators are looking oversold.
The following remarks were made in last week's post on the daily bar chart pattern of S&P 500: "A technical bounce is a possibility. However, bears are likely to adopt a 'sell on rise' approach to maintain dominance."
After closing below its 200 day EMA for the first time since Nov '16, the index bounced up as expected on Mon. Mar 26 and touched the week's high of 2675 on Tue. Mar 27.
Bears used the opportunity to sell. The index tested support from its 200 day EMA on the next two days, and then bounced up on Thu. Mar 29 - probably on short-covering before the long Easter weekend - to close with a 2% weekly gain.
Note that volume bars on two down-days (Tue. & Wed.) were higher. Bears are unlikely to give up their dominance easily - even though the index managed to close above its 200 day EMA in bull territory through the week.
Daily technical indicators are in bearish zones, and not showing any upward momentum. MACD is below its falling signal line in oversold zone. RSI bounced up after receiving support from the edge of its oversold zone, but stayed below its 50% level. Slow stochastic is inside its oversold zone.
Expect the falling 20 day and 50 day EMAs to provide resistance if the index tries to rally. There is real danger of the index breaching support from its 200 day EMA and falling below its Feb '18 low. That can trigger a deeper correction.
On longer term weekly chart (not shown), the index faced resistance from its 20 week EMA, but closed above its 50 week and 200 week EMAs in a long-term bull market. Weekly technical indicators are looking bearish and showing downward momentum.
FTSE 100 index chart pattern
The following remarks were made in last week's post on the daily bar chart pattern of FTSE 100: "A technical bounce is possible. Expect bears to use it as a selling opportunity."
The index received support from the long-term support level of 6875, and bounced up as expected. It even managed to cross above the 7100 level intra-day on Thu. Mar 29. Bears used the opportunity to sell.
The index closed below 7100 and the falling 20 day EMA, but gained almost 2% on a weekly closing basis.
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 in bearish zones. Only Slow stochastic is showing upward momentum. The index may consolidate within the two 'support/resistance' levels marked on the chart, but the 6875 level is likely to get breached sooner than later.
On longer term weekly chart (not shown), the index bounced up after receiving support from its 200 week EMA, but closed well below its 20 week and 50 week EMAs. The 20 week EMA has crossed below the 50 week EMA after 20 months. Weekly technical indicators are looking oversold.
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