S&P 500 index chart pattern
On Jul 25, the daily bar chart pattern of S&P 500 had partly filled the 13 points downward 'gap' formed on Jan 30. Bear resistance led to a brief correction.
The index received twin support from its rising 20 day EMA, and the support/resistance zone between 2780 and 2800. Formation of a small 'double bottom' reversal pattern led to a technical bounce.
The index closed at 2840 - just inside the 'gap' and above its three rising EMAs in a bull market. A convincing move (i.e. accompanied by strong volume support) above the 'gap' is required for the index to rise to new highs.
Daily technical indicators are looking bullish. MACD is trying to cross above its signal line. RSI and Slow stochastic are showing upward momentum. Bears are likely to put up a fight to defend the 'gap', but may be on the verge of getting vanquished.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD and RSI are rising in bullish zones. Slow stochastic is showing negative divergence by moving sideways inside its overbought zone.
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 had been consolidating sideways and appeared to be forming a 'saucer' or a 'cup and handle' pattern.
Sharp corrections on Wed. & Thu. (Aug 1 & 2) dropped the index below its 20 day and 50 day EMAs, which may have negated both those patterns. The index is trading above its rising 200 day EMA in a bull market.
Daily technical indicators are looking neutral to bearish. MACD and RSI are in neutral zones and showing slight downward momentum. Stochastic has fallen below its 50% level after forming a 'triple top' reversal pattern inside its overbought zone.
Expect the consolidation to continue for some time. A test of support from the 200 day EMA is also a possibility.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD has crossed below its signal line in bullish zone. RSI is falling in bullish zone. Slow stochastic has dropped below its 50% level.
On Jul 25, the daily bar chart pattern of S&P 500 had partly filled the 13 points downward 'gap' formed on Jan 30. Bear resistance led to a brief correction.
The index received twin support from its rising 20 day EMA, and the support/resistance zone between 2780 and 2800. Formation of a small 'double bottom' reversal pattern led to a technical bounce.
The index closed at 2840 - just inside the 'gap' and above its three rising EMAs in a bull market. A convincing move (i.e. accompanied by strong volume support) above the 'gap' is required for the index to rise to new highs.
Daily technical indicators are looking bullish. MACD is trying to cross above its signal line. RSI and Slow stochastic are showing upward momentum. Bears are likely to put up a fight to defend the 'gap', but may be on the verge of getting vanquished.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD and RSI are rising in bullish zones. Slow stochastic is showing negative divergence by moving sideways inside its overbought zone.
FTSE 100 index chart pattern
Sharp corrections on Wed. & Thu. (Aug 1 & 2) dropped the index below its 20 day and 50 day EMAs, which may have negated both those patterns. The index is trading above its rising 200 day EMA in a bull market.
Daily technical indicators are looking neutral to bearish. MACD and RSI are in neutral zones and showing slight downward momentum. Stochastic has fallen below its 50% level after forming a 'triple top' reversal pattern inside its overbought zone.
Expect the consolidation to continue for some time. A test of support from the 200 day EMA is also a possibility.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD has crossed below its signal line in bullish zone. RSI is falling in bullish zone. Slow stochastic has dropped below its 50% level.
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