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: "Bulls may make another attempt to fill 'GAP 2' - either partly or completely. Their previous two attempts had failed. May be it will be 'third time lucky'? Even if it is, the upper edge of 'GAP 2' can provide tougher resistance."
Bulls did make another attempt to fill 'GAP 2' and were 'third time lucky' by completely filling it. On Wed. Jun 6, the index overcame resistance from the upper edge of 'GAP 2' and closed above the 'Flag' pattern.
Next day, the index pulled back to the top of the 'Flag' after facing resistance from the 2780 level - giving bulls a chance to 'buy the dip'. On Fri. Jun 8, the index bounced up to close just below 2780 with a 1.6% weekly gain.
Daily technical indicators are looking bullish and a bit overbought. MACD has entered its overbought zone. RSI is trying to rise towards its overbought zone. Slow stochastic is inside its overbought zone, and showing negative divergence by failing to rise higher with the index.
Note that Friday's higher close was on weaker volumes. Bears may use the opportunity to force bulls to retreat. Any further rally is likely to face resistance from the 2810 level. 'GAP 1' - which has remained unfilled for more than 4 months - is going to provide stronger resistance.
The index is trading above its three rising EMAs. The long-term structure of the chart remains bullish.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are showing upward momentum in bullish zones.
FTSE 100 index chart pattern
The following remark appeared in last week's post on the daily bar chart pattern of FTSE 100: "The index may attempt to cross above its Jan '18 top of 7793 after some more consolidation in the zone between 7610 and 7793."
As expected, the index consolidated in the zone between 7610 and 7793 during the week. On Fri. Jun 8, the index dropped sharply below its 20 day EMA to an intra-day low of 7638, but closed above it - forming a 'hammer' candlestick that has bullish implications. (At the time of writing this post, FTSE is trading 38 points higher.)
Daily technical indicators are looking bearish. MACD and RSI are falling in bullish zones. Slow stochastic is trying to recover after falling into bearish zone. Some more consolidation is likely. The index is trading above its three rising EMAs in a bull market.
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 'doji' candlestick that shows indecision among bulls and bears. Weekly MACD is rising inside its overbought zone. RSI is rising above its 50% level. Slow stochastic is about to fall from its overbought zone.
The following remarks were made in last week's post on the daily bar chart pattern of S&P 500: "Bulls may make another attempt to fill 'GAP 2' - either partly or completely. Their previous two attempts had failed. May be it will be 'third time lucky'? Even if it is, the upper edge of 'GAP 2' can provide tougher resistance."
Bulls did make another attempt to fill 'GAP 2' and were 'third time lucky' by completely filling it. On Wed. Jun 6, the index overcame resistance from the upper edge of 'GAP 2' and closed above the 'Flag' pattern.
Next day, the index pulled back to the top of the 'Flag' after facing resistance from the 2780 level - giving bulls a chance to 'buy the dip'. On Fri. Jun 8, the index bounced up to close just below 2780 with a 1.6% weekly gain.
Daily technical indicators are looking bullish and a bit overbought. MACD has entered its overbought zone. RSI is trying to rise towards its overbought zone. Slow stochastic is inside its overbought zone, and showing negative divergence by failing to rise higher with the index.
Note that Friday's higher close was on weaker volumes. Bears may use the opportunity to force bulls to retreat. Any further rally is likely to face resistance from the 2810 level. 'GAP 1' - which has remained unfilled for more than 4 months - is going to provide stronger resistance.
The index is trading above its three rising EMAs. The long-term structure of the chart remains bullish.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are showing upward momentum in bullish zones.
FTSE 100 index chart pattern
As expected, the index consolidated in the zone between 7610 and 7793 during the week. On Fri. Jun 8, the index dropped sharply below its 20 day EMA to an intra-day low of 7638, but closed above it - forming a 'hammer' candlestick that has bullish implications. (At the time of writing this post, FTSE is trading 38 points higher.)
Daily technical indicators are looking bearish. MACD and RSI are falling in bullish zones. Slow stochastic is trying to recover after falling into bearish zone. Some more consolidation is likely. The index is trading above its three rising EMAs in a bull market.
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 'doji' candlestick that shows indecision among bulls and bears. Weekly MACD is rising inside its overbought zone. RSI is rising above its 50% level. Slow stochastic is about to fall from its overbought zone.
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