S&P 500 index chart pattern
Note the following comment from last week's post on the daily bar chart pattern of S&P 500: "A convincing move above 2800 is likely to face resistance from the 'downward gap' formed back in Jan '18."
The index touched an intra-day high of 2817 on Wed. Jul 18 - well short of the 'GAP' (formed back in Jan '18) - and dropped back towards 2800 to close absolutely flat on a weekly basis.
Strong volumes on Thu. & Fri. (Jul 19 & 20) - both down-days - show bears are not ready to yield ground without a fight. All three EMAs are rising, and the index is trading above them in a bull market.
Daily MACD and RSI are in bullish zones, but not showing any upward momentum. Slow stochastic is inside its overbought zone and beginning to correct. All three indicators are showing negative divergences by failing to rise higher with the index.
Some more correction or consolidation is likely before the index makes another attempt to close the 'GAP'. Trump's trade war with China may lead to a currency war, which is making bulls hesitant.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market, but formed a 'doji' candlestick. Weekly MACD and RSI are in bullish zones. Slow stochastic is rising inside its overbought zone. RSI is showing negative divergence by not rising higher with the index.
FTSE 100 index chart pattern
After touching a lifetime high of 7903.50 on May 22 '18, the daily bar chart pattern of FTSE 100 has been consolidating sideways, and appears to be forming a 'saucer' or a 'cup and handle' pattern. Both are bullish continuation patterns.
Daily technical indicators are giving mixed signals, which is often the case during periods of sideways consolidation. MACD is moving sideways above its signal line in bullish zone. RSI and Slow stochastic are in neutral zones and showing downward momentum.
Expect the consolidation to continue for a while. (At the time of writing this post, the index is trading a little below 7650.)
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.
Note the following comment from last week's post on the daily bar chart pattern of S&P 500: "A convincing move above 2800 is likely to face resistance from the 'downward gap' formed back in Jan '18."
The index touched an intra-day high of 2817 on Wed. Jul 18 - well short of the 'GAP' (formed back in Jan '18) - and dropped back towards 2800 to close absolutely flat on a weekly basis.
Strong volumes on Thu. & Fri. (Jul 19 & 20) - both down-days - show bears are not ready to yield ground without a fight. All three EMAs are rising, and the index is trading above them in a bull market.
Daily MACD and RSI are in bullish zones, but not showing any upward momentum. Slow stochastic is inside its overbought zone and beginning to correct. All three indicators are showing negative divergences by failing to rise higher with the index.
Some more correction or consolidation is likely before the index makes another attempt to close the 'GAP'. Trump's trade war with China may lead to a currency war, which is making bulls hesitant.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market, but formed a 'doji' candlestick. Weekly MACD and RSI are in bullish zones. Slow stochastic is rising inside its overbought zone. RSI is showing negative divergence by not rising higher with the index.
FTSE 100 index chart pattern
After touching a lifetime high of 7903.50 on May 22 '18, the daily bar chart pattern of FTSE 100 has been consolidating sideways, and appears to be forming a 'saucer' or a 'cup and handle' pattern. Both are bullish continuation patterns.
Daily technical indicators are giving mixed signals, which is often the case during periods of sideways consolidation. MACD is moving sideways above its signal line in bullish zone. RSI and Slow stochastic are in neutral zones and showing downward momentum.
Expect the consolidation to continue for a while. (At the time of writing this post, the index is trading a little below 7650.)
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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