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 convincing breakout above the 'triangle' and a move above the 2800 level will put bulls back on track to regain control of the chart. Bears will try to make their progress as difficult as possible."
The index broke out above the down trend line of the large 'symmetrical triangle' on Mon. Jul 9, but without a significant increase in volumes that would have technically validated the breakout.
Though the index rose higher on Tue. Jul 10, it failed to reach the 2800 level. A pullback to the down trend line on Wed. Jul 11 was followed by an upward bounce that just about managed to close above 2800.
Daily technical indicators are in bullish zones. MACD is rising above its signal line. RSI and Slow stochastic are moving sideways. All three are showing negative divergences by failing to rise higher with the index.
Some consolidation or correction is possible. The index is trading above its three rising EMAs in a bull market. A convincing move above 2800 is likely to face resistance from the 'downward gap' formed back in Jan '18.
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 in bullish zones, but showing negative divergences by not rising higher with the index.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 had touched a lifetime high of 7903.50 on May 22 '18. Since then, it had been trading within a downward sloping channel (also called a 'flag').
By not dropping to the lower edge of the 'flag', the index was expected to breakout above the 'flag'. It did so on Mon. Jul 9, only to pull back inside the 'flag' on Wed. Jul 11 - where it received support from its 50 day EMA.
The subsequent upward bounce was again not accompanied by a surge in volumes (not shown) that would have technically validated the upward breakout. (At the time of writing this post, the index has pulled back to the top of the 'flag'.)
What had looked like a bullish 'flag' pattern is now beginning to look more like a 'saucer' or a 'cup and handle' pattern. Both patterns - if they get formed - have bullish implications. The index is trading above its three EMAs in a bull market.
Daily technical indicators are looking neutral to bullish. MACD and RSI are moving sideways in neutral zones. Slow stochastic is in bullish zone, but not showing much upward momentum.
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 downward momentum in bullish zones.
The following remarks were made in last week's post on the daily bar chart pattern of S&P 500: "A convincing breakout above the 'triangle' and a move above the 2800 level will put bulls back on track to regain control of the chart. Bears will try to make their progress as difficult as possible."
The index broke out above the down trend line of the large 'symmetrical triangle' on Mon. Jul 9, but without a significant increase in volumes that would have technically validated the breakout.
Though the index rose higher on Tue. Jul 10, it failed to reach the 2800 level. A pullback to the down trend line on Wed. Jul 11 was followed by an upward bounce that just about managed to close above 2800.
Daily technical indicators are in bullish zones. MACD is rising above its signal line. RSI and Slow stochastic are moving sideways. All three are showing negative divergences by failing to rise higher with the index.
Some consolidation or correction is possible. The index is trading above its three rising EMAs in a bull market. A convincing move above 2800 is likely to face resistance from the 'downward gap' formed back in Jan '18.
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 in bullish zones, but showing negative divergences by not rising higher with the index.
FTSE 100 index chart pattern
By not dropping to the lower edge of the 'flag', the index was expected to breakout above the 'flag'. It did so on Mon. Jul 9, only to pull back inside the 'flag' on Wed. Jul 11 - where it received support from its 50 day EMA.
The subsequent upward bounce was again not accompanied by a surge in volumes (not shown) that would have technically validated the upward breakout. (At the time of writing this post, the index has pulled back to the top of the 'flag'.)
What had looked like a bullish 'flag' pattern is now beginning to look more like a 'saucer' or a 'cup and handle' pattern. Both patterns - if they get formed - have bullish implications. The index is trading above its three EMAs in a bull market.
Daily technical indicators are looking neutral to bullish. MACD and RSI are moving sideways in neutral zones. Slow stochastic is in bullish zone, but not showing much upward momentum.
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 downward momentum in bullish zones.
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