Monday, April 22, 2019

S&P 500 and FTSE 100 charts (Apr 18, 2019): bulls in charge, but bears refusing to give up

S&P 500 index chart pattern


The following comments were made in last week's post on the daily bar chart pattern of S&P 500: "A new high is now within handshaking distance. But bears are still not ready to throw in the towel."

The index consolidated sideways within a 26 points range - touching an intra-day high of 2918 on Wed. Apr 17, but forming a 'reversal day' bar. The index closed just 2 points lower on a weekly basis.

For the past seven weeks, the index is trading within a 'rising wedge' pattern, from which a downward breakout is likely. 

Daily technical indicators are in bullish zones but showing slight downward momentum. MACD has slipped below its signal line. RSI again faced resistance from the edge of its overbought zone. Slow stochastic is correcting inside its overbought zone. 

All three EMAs are rising and the index is trading above them in a bull market. However, negative divergences visible on all three indicators - which failed to rise to new highs with the index - can trigger a correction.

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market, but formed a 'doji' candlestick that can have bearish implicationsWeekly MACD is rising above its signal line bullish zone. RSI is moving sideways above its 50% level. Slow stochastic is well inside its overbought zone.

FTSE 100 index chart pattern


The daily bar chart pattern of FTSE 100 consolidated sideways within a 66 points range during the Easter holiday-shortened trading week. The index gained about 23 points (0.3%) on a weekly closing basis.

All three EMAs are rising and the index is trading above them in a bull market. Volumes remained low - as there was little follow-up buying before a long weekend.

Daily technical indicators are in bullish zones but showing slight downward momentum. MACD has slipped below its signal line. RSI faced resistance from the edge of its overbought zone and dropped down. Stochastic is correcting inside its overbought zone. Some correction or more consolidation is likely.

On longer term weekly chart (not shown), the index closed well above its three weekly EMAs in long-term bull territory. Weekly technical indicators are looking bullish. MACD is rising above its signal line in bullish zone. RSI is above its 50% levelStochastic is well inside its overbought zone.

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