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 the Aug 7 top of 2863 should take the index to a new lifetime high after almost 7 months."
On Tue. Aug 21, the index tested its Jan 26 top of 2873, but slipped down to close exactly at its Aug 7 top of 2863. Two days of sideways consolidation followed, with the index dropping below 2860.
On Fri. Aug 24, the index touched a new lifetime high of 2876 after almost 7 months before closing just below 2875. Time for bulls to celebrate?
Not yet. While the index was touching new highs during the past month, volumes have been sliding down. Also, all three technical indicators have been showing negative divergences by touching lower tops.
All three EMAs are rising, and the index is trading above them in a bull market. However, technical headwinds may trigger some consolidation or correction. It is better to err on the side of caution when the index is at a new high.
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 showing upward momentum. Slow stochastic is showing negative divergence by moving sideways inside its overbought zone.
FTSE 100 index chart pattern
The following comment was made in last week's post on the daily bar chart pattern of FTSE 100: "Some more correction/consolidation within the downward-sloping channel is likely."
As expected, the index consolidated sideways below its 20 day and 50 day EMAs but above its 200 day EMA inside the downward-sloping channel. Some more consolidation seems likely.
Daily technical indicators are in bearish zones. MACD is sliding down below its signal line. RSI is gradually falling below its 50% level. Stochastic is about to resume its downward move towards its oversold zone.
On longer term weekly chart (not shown), the index closed at its 20 week EMA but above its 50 week and 200 week EMAs in a long-term bull market. Weekly MACD is sliding down below its signal line in bullish zone. RSI is falling in bullish zone. Slow stochastic is falling towards its oversold zone.
Note the following comment from last week's post on the daily bar chart pattern of S&P 500: "A convincing move above the Aug 7 top of 2863 should take the index to a new lifetime high after almost 7 months."
On Tue. Aug 21, the index tested its Jan 26 top of 2873, but slipped down to close exactly at its Aug 7 top of 2863. Two days of sideways consolidation followed, with the index dropping below 2860.
On Fri. Aug 24, the index touched a new lifetime high of 2876 after almost 7 months before closing just below 2875. Time for bulls to celebrate?
Not yet. While the index was touching new highs during the past month, volumes have been sliding down. Also, all three technical indicators have been showing negative divergences by touching lower tops.
All three EMAs are rising, and the index is trading above them in a bull market. However, technical headwinds may trigger some consolidation or correction. It is better to err on the side of caution when the index is at a new high.
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 showing upward momentum. Slow stochastic is showing negative divergence by moving sideways inside its overbought zone.
FTSE 100 index chart pattern
As expected, the index consolidated sideways below its 20 day and 50 day EMAs but above its 200 day EMA inside the downward-sloping channel. Some more consolidation seems likely.
Daily technical indicators are in bearish zones. MACD is sliding down below its signal line. RSI is gradually falling below its 50% level. Stochastic is about to resume its downward move towards its oversold zone.
On longer term weekly chart (not shown), the index closed at its 20 week EMA but above its 50 week and 200 week EMAs in a long-term bull market. Weekly MACD is sliding down below its signal line in bullish zone. RSI is falling in bullish zone. Slow stochastic is falling towards its oversold zone.
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