S&P 500 index chart pattern
The daily bar chart pattern of S&P 500 has spent two straight weeks consolidating sideways within a 'flag' pattern. The index faced resistance from 'GAP 2' on Tue. May 22 and received support from its 20 day EMA on Thu. May 24.
The index gained 8 points (0.3%) on a weekly closing basis, and continues to trade above its three EMAs in a bull market. 'GAP 2' has remained unfilled for more than 2 months. Even if it gets filled, the corrective down move should resume thereafter.
As long as the index trades below 'GAP 1' - formed 4 months back - bears will make every endeavour to make life difficult for bulls.
Daily technical indicators are in bullish zones, but not showing any upward momentum. MACD is about to cross below its rising signal line. RSI is sliding down towards its 50% level. Slow stochastic has formed a 'double top' reversal pattern inside its overbought zone.
Some more consolidation or correction is likely. Partial profit booking may be a good idea.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market, but formed a 'doji' candlestick. Weekly technical indicators are in bullish zones. Only Slow stochastic is showing upward momentum.
FTSE 100 index chart pattern
The following remark was made in last week's post on the daily bar chart pattern of FTSE 100: "Daily technical indicators are looking quite overbought, and can trigger some correction or consolidation."
The index rose to touch a lifetime intra-day high of 7903.50 on Tue. Mar 22 but closed below its previous top of 7793 on Wed. Mar 23 on profit booking. After falling to an intra-day low of 7703, the index ended 48 points (0.6%) lower on a weekly closing basis at 7730.
Daily technical indicators are correcting overbought conditions. MACD has crossed below its signal line inside its overbought zone. RSI is falling inside its overbought zone. Slow stochastic is falling rapidly towards its 50% level.
The index is trading above its three EMAs in a bull market. However, some more correction or consolidation is possible.
On longer term weekly chart (not shown), the index closed well above its three weekly EMAs in a long-term bull market, but formed a large 'reversal' bar (higher high, lower close) that often marks an intermediate top. Weekly MACD is rising inside its overbought zone. RSI is rising above its 50% level. Slow stochastic has started correcting inside its overbought zone.
The daily bar chart pattern of S&P 500 has spent two straight weeks consolidating sideways within a 'flag' pattern. The index faced resistance from 'GAP 2' on Tue. May 22 and received support from its 20 day EMA on Thu. May 24.
The index gained 8 points (0.3%) on a weekly closing basis, and continues to trade above its three EMAs in a bull market. 'GAP 2' has remained unfilled for more than 2 months. Even if it gets filled, the corrective down move should resume thereafter.
As long as the index trades below 'GAP 1' - formed 4 months back - bears will make every endeavour to make life difficult for bulls.
Daily technical indicators are in bullish zones, but not showing any upward momentum. MACD is about to cross below its rising signal line. RSI is sliding down towards its 50% level. Slow stochastic has formed a 'double top' reversal pattern inside its overbought zone.
Some more consolidation or correction is likely. Partial profit booking may be a good idea.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market, but formed a 'doji' candlestick. Weekly technical indicators are in bullish zones. Only Slow stochastic is showing upward momentum.
FTSE 100 index chart pattern
The index rose to touch a lifetime intra-day high of 7903.50 on Tue. Mar 22 but closed below its previous top of 7793 on Wed. Mar 23 on profit booking. After falling to an intra-day low of 7703, the index ended 48 points (0.6%) lower on a weekly closing basis at 7730.
Daily technical indicators are correcting overbought conditions. MACD has crossed below its signal line inside its overbought zone. RSI is falling inside its overbought zone. Slow stochastic is falling rapidly towards its 50% level.
The index is trading above its three EMAs in a bull market. However, some more correction or consolidation is possible.
On longer term weekly chart (not shown), the index closed well above its three weekly EMAs in a long-term bull market, but formed a large 'reversal' bar (higher high, lower close) that often marks an intermediate top. Weekly MACD is rising inside its overbought zone. RSI is rising above its 50% level. Slow stochastic has started correcting inside its overbought zone.
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