S&P 500 index chart pattern
The daily bar chart pattern of S&P 500 seems to have brushed aside feeble bear resistance. The index bounced up after receiving support from its rising 20 day EMA and touched a new high of 3028 on Fri. Jul 26.
The index gained 49 points (1.6%) on a weekly closing basis, and is trading above its three rising EMAs in a bull market. However, bears are refusing to give up. Volumes were heaviest on Thu. Jul 25 - the only down day during the week. A sign that 'smart money' is getting out?
Daily technical indicators are in bullish zones but showing weak upward momentum. MACD is moving sideways below its falling signal line. RSI is moving sideways above its 50% level. Slow stochastic has re-entered its overbought zone.
All three indicators are showing negative divergences by failing to touch new highs with the index. Some correction or consolidation may follow.
On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market, but has formed a 'broadening top' reversal pattern since Jan '18. Weekly technical indicators are looking overbought and showing negative divergences by failing to touch new highs.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 continued its sideways consolidation with a downward bias for the third straight week. The index touched a high of 7599 in bull territory on Tue. Jul 23, but dropped below its 20 day EMA the very next day.
FTSE dropped to seek support from its 50 day EMA on Thu. Jul 25. On Fri. Jul 26, the index bounced up above its 20 day EMA to close above its three EMAs in bull territory - at 7549 (gaining 40 points for the week).
Daily technical indicators are turning bullish. MACD is moving sideways below its falling signal line in bullish zone. RSI and Stochastic are rising above their respective 50% levels. The index seems ready to resume its up move.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the 8th straight week. Weekly technical indicators are showing upward momentum in bullish zones. MACD is rising above its signal line. RSI is moving up above its 50% level. Stochastic is rising inside its overbought zone.
S&P 500 index chart pattern
Overbought technical indicators had led to the following comment in last week's post on the daily bar chart pattern of S&P 500: "Some consolidation or correction is possible."
The index touched a new high of 3018 on Mon. Jul 15, but succumbed to profit booking and dropped to test support from its 20 day EMA. The index formed a 'reversal day' bar (lower low, higher close) on Thu. Jul 18, just as it had done on Tue. Jul 9, but failed to rally - losing 37 points (1.2%) on a weekly closing basis.
The index is trading above its three rising EMAs in a bull market. However, Friday's 'reversal day' bar (higher high, lower close) and strong volumes on last week's three down days show that bears are still alive and kicking.
Daily technical indicators are looking bearish. MACD crossed below its signal line and dropped from its overbought zone. RSI and Slow stochastic are falling towards their respective 50% levels. Another test of support from the 2954 level is a possibility.
On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market, but formed a 'reversal' bar (higher high, lower close). Weekly technical indicators are beginning to correct overbought conditions - hinting at some consolidation or correction.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 consolidated sideways with a downward bias for the second straight week. Like in the previous week, the index closed above the support level of 7529 during the first three days, but slipped below 7500 and its 20 day EMA on Thu. Jun 18.
On Fri. Jul 19, the index recovered to move above its three EMAs into bull territory, and closed almost flat on a weekly closing basis at 7509. FTSE appears to be forming a bullish 'flag' pattern from which an upward breakout is likely.
Daily technical indicators have turned bearish. MACD is falling below its signal line in bullish zone. RSI is falling towards its 50% level. Stochastic has dropped to the edge of its oversold zone, and can trigger a technical bounce.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the 7th straight week. Weekly technical indicators are in bullish zones but not showing any upward momentum. MACD is moving sideways above its signal line. RSI is also moving sideways above its 50% level. Stochastic is hovering at the edge of its overbought zone.
S&P 500 index chart pattern
An expected pullback towards the support level of 2954 on the daily bar chart pattern of S&P 500 touched an intra-day low of 2963 on Tue. Jun 9. Bulls decided to 'buy the dip'.
The index formed a 'reversal day' bar (lower low, higher close), which triggered a quick rally past the 3000 level to a new high of 3014 on Fri. Jul 12. The index gained 23 points (0.8%) on a weekly closing basis.
Daily technical indicators are looking overbought. MACD is rising above its signal line inside its overbought zone. RSI has entered its overbought zone. Slow stochastic is climbing inside its overbought zone, but showing negative divergence by failing to touch a new high with the index.
Some consolidation or correction is possible. All three EMAs are rising, and the index is trading well above them in a bull market.
On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are looking bullish and overbought, and showing negative divergences by failing to touch new highs with the index.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 consolidated sideways with a downward bias during the week. After closing above the support level of 7529 during the first three days, the index slipped below 7529 on Thu. Jun 11.
The 20 day EMA provided good support. The index managed to close above the 7500 level and its three EMAs in bull territory. FTSE lost 47 points (0.6%) on a weekly closing basis.
Daily technical indicators are in bullish zones but looking bearish. MACD has crossed below its signal line. RSI and Stochastic are falling towards their respective 50% levels. Some more consolidation or correction is likely.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the sixth straight week. Weekly technical indicators are in bullish zones. MACD has crossed above its signal line. RSI is slowing slight downward momentum above its 50% level. Stochastic has slipped down from its overbought zone.
S&P 500 index chart pattern
The following comment appeared in last week's post on the daily bar chart pattern of S&P 500: "It is just a matter of time before bulls overcome bear resistance at the 2954 level."
A holiday-shortened trading week started well for bulls. On Mon. Jul 1, the index formed an upward 'gap' and broke out above the resistance level of 2954. However, the upward breakout was not accompanied by a significant increase in volumes - keeping the door open for a pullback.
The index rose to touch a new high of 2996 on Jul 3, but faced profit booking and formed a bearish 'hanging man' candlestick on Fri. Jul 5 - closing slightly lower at 2990 with a 1.6% weekly gain.
Daily technical indicators are looking bullish and overbought. MACD is above its rising signal line inside its overbought zone. RSI has slipped down after briefly entering its overbought zone. Slow stochastic has re-entered its overbought zone.
Note that the technical indicators are showing negative divergences by failing to touch new highs with the index. A pullback towards 2954 and/or some consolidation is likely. All three EMAs are rising, and the index is trading well above them in a bull market.
On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are looking bullish and overbought, and showing negative divergences by failing to touch new highs with the index.
FTSE 100 index chart pattern
The following comment appeared in last week's post on the daily bar chart pattern of FTSE 100: "Technical confirmation of the 'cup and handle' pattern is still awaited..."
By breaking out and closing above the previous (Apr 23) top of 7529 on Jul 2, formation of the 'cup and handle' pattern has been technically confirmed. Note that there was no significant increase in volumes during the upward breakout.
As often happens to an upward breakout without volume support, the rally petered out after the index touched an intra-day high of 7622 on Jul 4. A pullback towards 7529 is in progress. Such pullbacks provide opportunities to add.
Daily technical indicators are in bullish zones but not showing any upward momentum. MACD is rising above its signal line, but its upward momentum has weakened. RSI and Stochastic have dropped from their respective overbought zones.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the fifth straight week. Weekly technical indicators are looking bullish. MACD has crossed above its signal line in bullish zone. RSI is rising above its 50% level. Stochastic has entered its overbought zone. Some consolidation or correction is possible.
S&P 500 index chart pattern
The following remark appeared in last week's post on the daily bar chart pattern of SPX 500: "Expect bears to put up a fight to defend the 2954 level. But it might be a 'fight for a cause long ago forgotten'."
Bears did put up a good fight, as the index closed lower during the first three trading days of the week, touching a low of 2913 on Wed. Jun 26. However, bulls fought back. The index lost just 9 points on a weekly closing basis.
Daily technical indicators are in bullish zones, but only RSI is showing some upward momentum. MACD is above its rising signal line. RSI has moved up after a dip towards its 50% level. Slow stochastic has dropped sharply from its overbought zone.
All three EMAs are rising, and the index is trading above them in a bull market. It is just a matter of time before bulls overcome bear resistance at the 2954 level.
On longer term weekly chart (not shown), the index closed well above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones, but not showing much upward momentum.
FTSE 100 index chart pattern
The following remark appeared in last week's post on the daily bar chart pattern of FTSE 100: "A convincing close above the previous (Apr 23) top of 7529 is required for bulls to regain control of the chart, and technically confirm completion of a bullish 'cup and handle' pattern..."
Technical confirmation of the 'cup and handle' pattern is still awaited, as the index consolidated sideways within a trading range during the week.
Daily technical indicators are in bullish zones but only Stochastic is showing upward momentum. MACD has dropped to seek support from its signal line. RSI is moving sideways above its 50% level. Stochastic has recovered after falling towards its 50% level.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the fourth straight week. Weekly technical indicators are looking bullish. MACD has crossed above its signal line in bullish zone. RSI and Stochastic are rising above their respective 50% levels. Some more upside is likely.
S&P 500 index chart pattern
The following comment appeared in last week's post on the daily bar chart pattern of S&P 500: "Some more consolidation is possible before the index attempts to scale a new high."
The sideways consolidation continued on Mon. Jun 17. Next day, the index formed an upward 'gap' that triggered a dash towards the previous (May 1) top of 2954. On Thu. Jun 20, the index touched a new high of 2958, but closed exactly at its previous top of 2954.
On Fri. Jun 21, the index touched another new high of 2964 with a volume surge, but closed lower at 2950 - forming a small 'reversal day' bar (higher high, lower close). A 'reversal day' bar at a market top can trigger a correction.
Failure to close convincingly above its previous top leaves the door open for the formation of a 'double top' reversal pattern - which will get confirmed only if the index falls below 2729 (the low touched on Jun 3).
Daily technical indicators are in bullish zones, but only MACD is showing some upward momentum. MACD is rising above its signal line in bullish zone. RSI has slipped down after facing resistance from the edge of its overbought zone. Slow stochastic is moving sideways well inside its overbought zone.
All three indicators are showing negative divergences by failing to touch new highs with the index. Expect bears to put up a fight to defend the 2954 level. But it might be a 'fight for a cause long ago forgotten'. The index closed above its three rising EMAs in a bull market.
On longer term weekly chart (not shown), the index closed well above its three weekly EMAs in a long-term bull market. Weekly technical indicators are moving up in bullish zones, but showing negative divergences by failing to touch new highs with the index.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 bounced up after receiving good support from its 20 day EMA, and rose to touch the week's high of 7469 on Tue. Jun 18. Bears got into the act, preventing the index from making further upward progress.
The volume spike on Fri. Jun 21 may be the sign of a selling climax. The index managed to close above the 7400 level and its three EMAs in bull territory, with a weekly gain of 0.8%.
Daily technical indicators are in bullish zones but only MACD is showing upward momentum. MACD is rising above its signal line in bullish zone. RSI is moving sideways above its 50% level. Stochastic has dropped to the edge of its overbought zone after re-entering it.
A convincing close above the previous (Apr 23) top of 7529 is required for bulls to regain control of the chart, and technically confirm completion of a bullish 'cup and handle' pattern (clearly visible on the 50 day EMA).
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory for the third straight week. Weekly technical indicators are turning bullish. MACD is about to cross above its signal line in bullish zone. RSI and Stochastic are rising above their respective 50% levels. Some more upside seems likely.
S&P 500 index chart pattern
The following comments appeared in last week's post on the daily bar chart pattern of S&P 500: "The week's rally was accompanied by sliding volumes. A pullback towards the down trend line is a possibility."
The index touched an intra-day high of 2911 on Tue. Jun 11, but pulled back towards the (purple) down trend line, forming a 'reversal day' bar (higher high, lower close).
A sideways consolidation in a range of 20 points (2875 - 2895) followed. The index closed above its three EMAs in a bull market, and eked out a 0.5% weekly gain.
Daily technical indicators are in bullish zones, but not showing any upward momentum. MACD has crossed above its signal line to enter bullish zone. RSI is moving sideways above its 50% level. Slow stochastic is moving sideways inside its overbought zone.
Some more consolidation is possible before the index attempts to scale a new high.
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 indicating indecision among bulls and bears. Weekly technical indicators are looking bullish to neutral. MACD is moving sideways below its signal line. RSI has moved above its 50% level after falling below it. Slow stochastic has moved up to its 50% level after falling below it.
FTSE 100 index chart pattern
The following comments appeared in last week's post on the daily bar chart pattern of FTSE 100: "Near-term index upside may be limited. Sliding volumes during last week's rally can encourage bears to 'sell on rise'."
The index touched an intra-day high of 7421 and closed just below 7400 on Tue. Jun 11 - negating the bearish 'head and shoulders' pattern (refer last week's post). Bulls failed to press home their advantage, and bears stepped in to sell as expected.
The index received support from its 20 day EMA, and closed above its three EMAs in bull territory. Strong volumes on the two down days indicate bears are in no mood to give up without a fight.
Daily technical indicators are in bullish zones but showing downward momentum. MACD crossed above its signal line to enter bullish zone, but is turning down. RSI is falling towards its 50% level. Stochastic has slipped down from its overbought zone.
A fall and a test of support from the 200 day EMA may be on the cards.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in long-term bull territory, but formed a 'shooting star' candlestick pattern that can trigger some correction or consolidation . Weekly technical indicators are in bullish zones, but not showing any upward momentum.
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: "Some more correction, and a drop towards the support zone between 2700-2725 is likely."
The index corrected further below its 200 day EMA on Mon. Jun 3, but received good support from the zone between 2700-2725. A 'V' shaped technical bounce propelled the index above its 20 day and 50 day EMAs back into bull territory by Thu. Jun 6.
On Fri. Jun 7, the index breached the (purple) down trend line after spending 5 weeks below it, and closed with a 121 points (4.4%) weekly gain. The week's rally was accompanied by sliding volumes. A pullback towards the down trend line is a possibility.
Daily technical indicators are looking bullish, and showing upward momentum. MACD has crossed above its signal line in bearish zone. RSI has moved above its 50% level after bouncing up from the edge of its oversold zone. Slow stochastic is rising sharply towards its overbought zone.
The rally may have been triggered by short covering. So don't be surprised if bears start to 'sell on rise' to regain control.
On longer term weekly chart (not shown), the index formed a large 'reversal' bar (lower low, higher close) and closed above its three weekly EMAs in a long-term bull market. Weekly technical indicators are turning bullish. MACD is below its signal line in bullish zone, but has stopped falling. RSI has moved above its 50% level after falling below it. Slow stochastic is below its 50% level, but has stopped falling.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 touched a low of 7080 on Mon. Jun 3, but formed a 'reversal day' bar (lower low, higher close) that triggered a 'V' shaped pullback rally.
By not falling below 7000, the 'cup and handle' pattern (refer this post) remains alive. The index closed above its three EMAs in bull territory, gaining 170 points (2.4%) on a weekly closing basis.
The bearish 'head and shoulders' pattern (mentioned in last week's post) will get negated if the index can close convincingly above its previous (May 22) top of 7373.
Daily technical indicators are looking bullish and showing upward momentum. MACD has crossed above its signal line in bearish zone. RSI has moved above its 50% level. Stochastic has entered its overbought zone.
Near-term index upside may be limited. Sliding volumes during last week's rally can encourage bears to 'sell on rise'.
On longer term weekly chart (not shown), the index formed a large 'reversal' bar (lower low, higher close) and closed above its three weekly EMAs in a long-term bull territory. Weekly technical indicators are in bullish zones, and showing upward momentum.
S&P 500 index chart pattern
The following remark appeared in last week's post on the daily bar chart pattern of S&P 500: "As long as the index trades above its 200 day EMA, bulls need not worry too much."
It is time for bulls to start worrying. The index successfully tested support from its 200 day EMA on May 29 and 30, but the support was breached on Fri. May 31.
The index formed a small (8 points) downward 'gap' below its 200 day EMA, and closed in bear territory for the first time in four months. Support at the 2750 level may not hold for long, as strong volumes on recent down days indicate bears are regaining control.
Daily technical indicators are in bearish zones, and showing downward momentum. MACD is falling below its signal line. RSI has dropped down to the edge of its oversold zone. Slow stochastic sliding deeper inside its oversold zone.
Some more correction, and a drop towards the support zone between 2700-2725 is likely. The (purple) down trend line has dominated the chart during the entire month.
On longer term weekly chart (not shown), the index closed below its 20 week and 50 week EMAs, but well above its 200 week EMA in a long-term bull market. Weekly technical indicators are looking bearish, and showing downward momentum - hinting at more correction.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 has slipped into bear territory by closing below its three daily EMAs. What had seemed like the 'handle' of a 'cup and handle' pattern is turning into a bearish 'head and shoulders' reversal pattern with a 'neckline' at 7200.
Daily technical indicators are in bearish zones and showing downward momentum. MACD has crossed below its signal line. RSI is falling below its 50% level. Stochastic has entered its oversold zone.
Some more correction is likely - which will negate the 'cup and handle' pattern (refer last week's post).
On longer term weekly chart (not shown), the index closed below its merged 20 week and 50 week EMAs, but above its 200 week EMA in long-term bull territory. Weekly technical indicators are looking bearish, and showing downward momentum.
S&P 500 index chart pattern
The following comment was made in last week's post on the daily bar chart pattern of S&P 500: "The index remains in a down trend (marked by purple trend line) that started after the index touched a lifetime high of 2954 on May 1."
The index traded below the (purple) down trend line through the week. It made an attempt to move above its 50 day EMA on Tue. and Wed. (May 21 and 22), but dropped down to close below it - losing 1.2% on a weekly closing basis.
On Thu. May 23, the index tested support from the 2800 level for the second time since Mon. May 13, and bounced up a bit - keeping bullish hopes alive. As long as the index trades above its 200 day EMA, bulls need not worry too much.
Daily technical indicators are in bearish zones, and showing downward momentum. MACD is falling below its signal line. RSI has dropped down again after facing resistance from its 50% level. Slow stochastic had bounced up from the edge of its oversold zone, but is falling down towards it once more.
Some more correction, and a test of support from the 200 day EMA can be expected. A breach of the 200 day EMA can drop the index to the 2700-2725 zone.
On longer term weekly chart (not shown), the index dropped below its 20 week EMA for the 2nd week in a row, but bounced up to close above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones, but showing downward momentum - hinting at some more correction.
FTSE 100 index chart pattern
The following comment was made in last week's post on the daily bar chart pattern of FTSE 100: "A convincing move above the Apr 23 top of 7529 is necessary to complete the 'cup and handle' pattern."
The index made a feeble attempt to rise higher - touching a much lower top of 7373 on Wed. Mar 22 - but dropped down to test support from its 200 day EMA the next day.
Though the index bounced up to close just above 7275 in bull territory on Fri. May 24, it lost 70 points (~1%) on a weekly closing basis.
Daily technical indicators are giving conflicting signals. MACD is seeking support from its signal line in bearish zone. RSI is rising towards its 50% level after falling below it. Stochastic has moved above its 50% level after falling below it.
Expect some consolidation before the index can make another attempt to move above the Apr 23 top of 7529, which is necessary to complete the 'cup and handle' pattern.
On longer term weekly chart (not shown), the index dropped below its merged 20 week and 50 week EMAs, but bounced up to close above its three weekly EMAs in long-term bull territory. Weekly technical indicators are looking neutral to bearish, and showing slight downward momentum.
S&P 500 index chart pattern
Note the following comment in last week's post on the daily bar chart pattern of SPX 500: "Friday's 'outside day' candlestick may be hinting at a continuation of the down trend that started after the index touched its lifetime high of 2954 on May 1."
On Mon. May 13, the index dropped to test support from the 2800 level, and closed below its 50 day EMA. A technical bounce followed during the next three days. The index breached the 20 day EMA intra-day on Thu. May 16, but failed to close above it.
Bears came to the fore on Fri. May 17. The index dropped below its 50 day EMA intra-day, but managed to close just above it.
The index remains in a down trend (marked by purple trend line) that started after the index touched a lifetime high of 2954 on May 1.
Daily technical indicators are in bearish zones. MACD is moving sideways below its falling signal line. RSI has dropped down after facing resistance from its 50% level. Slow stochastic has bounced up from the edge of its oversold zone.
Some consolidation or more correction can be expected.
On longer term weekly chart (not shown), the index dropped below its 20 week EMA, but bounced up to close above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones, but showing downward momentum.
FTSE 100 index chart pattern
Note the following comments in last week's post on the daily bar chart pattern of FTSE 100: "The 'cup and handle' pattern has not been negated yet. Daily technical indicators are looking bearish and oversold...and can trigger a technical bounce."
On Mon. May 13, the index touched a low of 7151 and closed below its three EMAs in bear territory at 7164. A technical bounce during the next three days propelled the index to a close above its three EMAs and the 7350 level on Thu. May 16.
On Fri. May 17, the index closed just below 7350 but above its three EMAs in bull territory. However, formation of a small 'hanging man' candlestick can lead to some correction or consolidation.
Daily technical indicators are looking bullish after correcting oversold conditions. MACD is about to cross above its falling signal line in bearish zone. RSI and Stochastic have moved above their respective 50% levels.
A convincing move above the Apr 23 top of 7529 is necessary to complete the 'cup and handle' pattern.
On longer term weekly chart (not shown), the index formed a 'reversal' bar (lower low, higher close) and closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are in bullish zones, and showing slight upward momentum.
