Sensex, Nifty charts (Aug 28, 2020): moving higher on FII buying

FIIs were net buyers of equity on all five trading days during the week. Their total net buying was worth Rs 54.5 Billion. DIIs were net sellers of equity on all five trading days, but could not keep pace with FII buying. Their total net selling was worth Rs 30.56 Billion. 

SEBI had introduced certain restrictions on F&O trading to curb volatility on Mar 20. These restrictions, including limits on holding short positions, have been extended till Sep 24. Bulls are expected to drive home their advantage.

BSE Sensex index chart pattern

The daily bar chart pattern of Sensex moved up relentlessly on the back of strong FII buying and closed at its highest level in 6 months. Bears have been pushed back to the last ditch - a 335 points downward 'gap' that had formed on Feb 28th, a few days before the index crashed.

The index has already closed just above the 'gap' zone. It appears unlikely that bears will be able to put up much of a fight. An index up move to a new lifetime high may occur sooner than later.

All three EMAs are rising, and the index is trading above them - and above the (blue) up trend line - in a bull market. The 'golden cross' (of the 50 day EMA above the 200 day EMA - marked by light blue circle) had technically confirmed a return to a bull market. Bears are on the verge of throwing in the towel.

Daily technical indicators are looking bullish and a bit overbought. MACD is moving sideways after merging with its signal line in bullish zone. ROC is rising above its 10 day MA in bullish zone. RSI has just entered its overbought zone. Slow stochastic is moving sideways well inside its overbought zone.

Despite poor Q1 (Apr-Jun '20) corporate earnings and a likely contraction in GDP, analysts are projecting higher earnings two years forward to justify current stretched index valuations. 

Small investors should remain wary, because no one really knows how long the pandemic will continue to devastate the already slowing economy and what corporate earnings will look like two years down the road.

NSE Nifty index chart pattern

The weekly bar chart pattern of Nifty closed above its three weekly EMAs in long-term bull territory for the 8th straight week. The index moved above the psychological 11500 to its highest level in 6 months.

The 20 week and 50 week EMAs are moving up after forming bullish 'rounding bottom' patterns. The 200 week EMA is also moving up after forming a shallower saucer-like pattern. Bulls are gaining significant ground against bears.

Weekly technical indicators are looking bullish and overbought. MACD is rising above its signal line and has entered its overbought zone. RSI continues its gradual rise above its 50% level. Slow stochastic is moving sideways well inside its overbought zone. 

Nifty's TTM P/E touched a new lifetime high of 32.92, which is well above its long-term average and deep inside its overbought zone. The breadth indicator NSE TRIN (not shown) is falling sharply in neutral zone, hinting at some more near-term index upside.
 
Bottomline? Bulls are regaining control on Sensex and Nifty charts. Bears are clearly on the back foot - thanks to SEBI restrictions on short selling. Some more upside is likely. Stay on the sidelines and wait for better entry opportunities on dips.

Sensex, Nifty charts (Aug 07, 2020): bulls and bears reach a stalemate

FIIs were net sellers of equity on Wed. Aug. 5, but were net buyers on the other four trading days. Their total net buying was worth a huge Rs 94.97 Billion - thanks to Bandhan Bank owner holding divestment on Mon. Aug 3. DIIs were net sellers of equity on all five trading days. Their total net selling was worth Rs 21.34 Billion.

The IHS Markit India Manufacturing PMI dropped to 46 in Jul '20 from 47.2 in Jun '20. (A reading below 50 indicates contraction.) It was the fourth straight month of contraction. The Services PMI was 34.2 in Jul '20 against 33.7 in Jun '20. The Composite (Mfg. + Serv.) PMI slipped to 37.2 in Jul '20 from 37.8 in Jun '20.

India's Consumer Confidence index plummeted to 53.8 in Jul '20, well below the 100 mark that represents the dividing line between optimism and pessimism. Inflation expectations of households are rising, which may be one of the reasons why RBI maintained status quo on interest rates at its Aug '20 MPC meeting.

BSE Sensex index chart pattern

Despite strong buying by FIIs, the daily bar chart pattern of Sensex failed to move above the 640 points downward 'gap' formed back on Mar 6th. Bears are putting up a strong last-ditch resistance.

On Mon. Aug 3, the index dropped to close below its 20 day EMA for the first time in more than two months. Bulls used the dip to buy - as they have been doing for more than four months.

The index closed just below the 'gap' on Tue. and Wed. (Aug 4 and 5), but entered and remained within the 'gap' during the next two days. The 50 day EMA is on the verge of crossing above the 200 day EMA - the 'golden cross' will technically confirm a return to a bull market.

Daily technical indicators are looking bullish to neutral. MACD is moving sideways below its signal line in bullish zone. ROC is below its 10 day MA, and moving sideways along its '0' line. RSI is falling towards its 50% level. Slow stochastic has bounced up a bit after falling towards its 50% level.

The (blue) up trend line - currently at 37000 - remains intact and untested for the past two months. Any breach of the trend line may be followed by a drop to the 200 day EMA (currently at 36050).

Sensex needs to convincingly move above its Jul. 29th top of 38617 for the bullish pattern of 'higher tops, higher bottoms' to continue. That should not be a problem if FIIs continue their buying.

After touching 103 in mid-March '20, the US Dollar index had been declining steadily, but has bounced up a little after finding a bottom at 92.5. A fall in the Dollar index may be partly responsible for FII flows into emerging markets. The flows can reverse if the Dollar index starts rising.

NSE Nifty index chart pattern

The weekly bar chart pattern of Nifty closed above its three weekly EMAs for the fifth straight week, but failed to move above the 'support-resistance' zone between 11000-11250. Bear resistance forced a third weekly close inside the 'support-resistance' zone.

The 20 week and 50 week EMAs are moving up after forming bullish 'rounding bottom' patterns. Bulls have the upper hand. However, failure of the index to move above the 'support-resistance' zone has kept the door open for a correction down to the 200 week EMA (at 10282).

Weekly technical indicators are in bullish zones. MACD is rising above its signal line and has entered bullish zone. RSI is moving sideways above its 50% level. Slow stochastic is moving sideways well inside its overbought zone. 

Nifty's TTM P/E has moved up to 30.72, a new lifetime high and deep inside its overbought zone. The breadth indicator NSE TRIN (not shown) is in neutral zone, hinting at some more consolidation or correction.
 
Bottomline? Counter-trend rallies on Sensex and Nifty charts have stalled at resistance zones after re-entering bull territories. Bulls have the advantage, but bears are trying their best to hold them back. Stay invested, but avoid fresh buying.

Sensex, Nifty charts (Jul 31, 2020): a temporary pause or a trend reversal?

FIIs were net buyers of equity on Tue. and Thu. (Jul. 28 and 30), but were net sellers on the other three trading days. Their total net selling was worth Rs 13.11 Billion. DIIs were net buyers of equity on Fri. Jul. 31, but were net sellers on the first four trading days. Their total net selling was worth Rs 24.45 Billion.

During Jul. '20, FIIs were net buyers of equity worth Rs 24.9 Billion - thanks to their strong buying during the week of Jul. 20-24. It was their third straight month of net buying. DIIs were net sellers of equity worth Rs 100.08 Billion during Jul. '20. It was their heaviest monthly selling since Mar. '19.

The index of eight core sector industries contracted 15% in Jun '20, compared with 22% in May '20 and 37% in Apr '20. During Q1 (Apr-Jun '20), the index contracted 24.6%. Only fertilisers showed 4% growth. The other seven (coal, crude oil, natural gas, refinery products, steel, cement, electricity) contracted between 6 to 34%.

Gross tax revenue shortfall of 32.6% during Q1 (Apr-Jun '20) widened India's fiscal deficit to Rs 6.62 Trillion, which is 83.2% of the Rs 7.96 Trillion budget estimate for FY 2020-21. This is the highest fiscal deficit in percentage terms since Q1 (Apr-Jun 1998)

BSE Sensex index chart pattern

An interesting tussle between bulls and bears is evident on the daily bar chart pattern of Sensex. Despite buying pressure from FIIs, bears continued their last-ditch resistance at the 640 points downward 'gap' formed back on Mar 6th.

On Tue. Jul. 28, the index closed above the 'gap' zone. However, formation of a 'reversal day' bar (higher high, lower close) on Wed. Jul. 29 provided a psychological boost to bears. The index corrected during the rest of the week, and closed just below the 'gap'.

What next? Technically, the balance remains tilted towards bulls. The index is trading above its three daily EMAs in bull territory. The up trend line - drawn through Mar '20 and May '20 lows - remains intact. The 50 day EMA is poised to cross above the 200 day EMA - the 'golden cross' will technically confirm a return to a bull market.

Bears are not out of the game yet. As per 'gap' theory, part or complete filling of a 'gap' is usually followed by a resumption of the trend prior to formation of the 'gap'. That means the down trend that started from Wed. Jul. 29 can continue.

On the downside, the wide range between 35700 (level of 50 day EMA) and 37200 (level of 20 day EMA) can provide good support. However, a convincing breach of the up trend line (at 36500) will confirm a trend reversal.

Daily technical indicators are in bullish zones, but starting to show downward momentum. MACD is moving sideways but has slipped below its signal line. ROC has crossed below its 10 day MA. RSI and Slow stochastic have dropped down from their respective overbought zones.

There is no rush to buy the dip. It is possible that the index will test support from the up trend line. Add if the index bounces up from trend line support. Book profits if the trend line gets breached.

NSE Nifty index chart pattern

The weekly bar chart pattern of Nifty closed above its three weekly EMAs for the fourth straight week, but formed a weekly 'reversal' bar (higher high, lower close) that stalled the upward momentum of the rally from its Mar '20 low.

The index moved above the 'support-resistance' zone between 11000-11250 intra-week, but failed to sustain above 11250. Bear resistance forced a second weekly close inside the 'support-resistance' zone.

The 20 week EMA has crossed above the 200 week EMA after forming a bullish 'rounding bottom' pattern. The 50 week EMA is in the process of forming a 'rounding bottom' pattern. So, bulls have no reason to panic just yet. However, a test of support from the 200 week EMA (at 10273) may be on the cards.

Weekly technical indicators are in bullish zones. MACD is rising above its signal line and has entered bullish zone. RSI is above its 50% level. Slow stochastic is well inside its overbought zone. 

Nifty's TTM P/E has moved up to 30.2, a new lifetime high and deep inside its overbought zone. The breadth indicator NSE TRIN (not shown) is in neutral zone, hinting at more consolidation or correction.
 
Bottomline? Counter-trend rallies on Sensex and Nifty charts have expectedly stalled at resistance zones after re-entering bull territories. The current dip may not be a buying opportunity. Sometimes, staying on the sidelines can be a good strategy.

Sensex, Nifty charts (Jul 24, 2020): relying too much on Reliance?

FIIs turned bulls, and were net buyers of equity on all five trading days. Their total net buying was worth Rs 77.92 Billion. DIIs were net sellers on all five trading days, but couldn't keep pace with FII buying. Their total net selling was worth Rs 53.23 Billion. 

Sensex gained almost 3% while Nifty gained nearly 2.7% on the back of strong buying by FIIs, who seem to have taken a particular fancy for RIL despite poor Q4 performance. A slew of international investment announcements into Jio platforms has made the company 'net debt free'. 

A basket of penny stocks valued under Rs 5 - typically targeted by small retail investors - has outperformed the Sensex by a country mile. That is always a worrying sign for bulls.

BSE Sensex index chart pattern

The following comment was made in last week's post on the daily bar chart pattern of Sensex: "On the upside, resistance can be expected from a 640 points downward 'gap' formed on Mar 6th."

The index closed higher on Mon. Jul 20th, but formed a small 'doji' pattern that hinted at indecision among bulls and bears. An upward 'gap' opening on Tue. Jul 21 belied bearish hopes. The index entered and closed inside the 640 points downward 'gap' formed on Mar 6th.

For the next three days, Sensex consolidated sideways and closed within the 'gap' - nearly filling it, but failed to overcome last-ditch resistance put up by bears. 

Daily technical indicators are in bullish zones. MACD is moving sideways after merging with its signal line. ROC is also moving sideways after merging with its 10 day MA. RSI is seeking support from the edge of its overbought zone. Slow stochastic is moving sideways inside overbought zone.

The up trend line - drawn through Mar '20 and May '20 lows - remains intact. A 'golden cross' of the 50 day EMA above the 200 day EMA will technically confirm a return to a bull market. That seems a formality, now that FIIs have turned bulls.

If you have been waiting for a proper correction to enter, you may need to wait a little longer. If you were fortunate to enter the ongoing rally at lower levels, stay invested but maintain a trailing stop-loss to protect profits.

NSE Nifty index chart pattern

The weekly bar chart pattern of Nifty closed above its three weekly EMAs for the third week in a row, and above the 11000 level for the first time since Mar 5 '20. Note the following comment from last week's post:

"On the upside, the 'support-resistance' zone between 11000-11250 can provide bullied bears a last opportunity to put up some resistance." The index tested the 11250 level during the week, and closed below 11200 inside the 'support-resistance' zone.

The 20 week EMA has crossed above the 200 week EMA after forming a bullish 'rounding bottom' pattern. The 50 week EMA is in the process of forming a 'rounding bottom' pattern.

Weekly technical indicators are looking bullish. MACD is rising above its signal line and is poised to enter bullish zone. RSI is gradually rising above its 50% level. Slow stochastic is moving sideways well inside its overbought zone. 

Nifty's TTM P/E has moved up to 29.35, a lifetime high and deep inside its overbought zone. The breadth indicator NSE TRIN (not shown) has started rising in neutral zone, and can trigger some more consolidation or correction.
 
Bottomline? Ongoing rallies on Sensex and Nifty charts have stalled at resistance zones after re-entering bull territories. The rallies appear overly dependent on a single stock - RIL. It's a little late to jump into the bull bandwagon. Stay on the sidelines, but maintain trailing stop-losses to protect profits.

Gold and Silver charts: break out upwards from consolidation zones

Gold chart pattern

The daily bar chart pattern of Gold shows three clearly identifiable consolidation patterns - a 'falling wedge', a 'rectangle' and a 'symmetrical triangle'. All three patterns formed after the 'golden cross' of the 50 day EMA above the 200 day EMA technically confirmed a bull market.

After breaking out above the 'symmetrical triangle' on Wed. Jul 17, gold's price touched a 52 week high of 1454 on Thu. Jul 18. Note that all three technical indicators showed negative divergences by touching lower tops, which triggered a pullback to the top of the 'triangle'.

Daily technical indicators are in bullish zones after correcting overbought conditions, but are not showing much upward momentum. MACD is moving sideways below its falling signal line. RSI is hovering just below its overbought zone. Slow stochastic has bounced up after slipping below its 50% level.

The US Dollar index has been consolidating sideways between 96.40 and 97.20 since Jul 5. Gold's price consolidated sideways in tandem. After touching a low of 96.40 on Jul 19, the Dollar index has been climbing towards 97.20.

On longer term weekly chart (not shown), gold’s price closed well above its three rising weekly EMAs in long-term bull territory. Weekly technical indicators are inside their respective overbought zones. Some price correction or consolidation may follow.

Silver chart pattern

The daily bar chart pattern of Silver consolidated within a bullish 'flag' pattern from which an upward breakout occurred on Mon. Jul 15. Rising volumes propelled silver's price to a 52 week high of 16.62 on Fri. Jul 19 before profit booking caused a fall just below 16.20.

Silver's price has since bounced up to close just above 16.40, and well above its three EMAs in bull territory. The 'golden cross' of the 50 day EMA above the 200 day EMA has technically confirmed a return to a bull market. 

Daily technical indicators are looking bullish and overbought. MACD and RSI are rising inside their respective overbought zones. Slow stochastic is correcting inside its overbought zone - hinting at some near-term price consolidation or correction.

On longer term weekly chart (not shown), silver's price tested resistance from its 200 week EMA, and closed well above its 20 week and 50 week EMAs in a long-term bear market. Weekly technical indicators are looking bullish and showing upward momentum. 

WTI and Brent Crude Oil charts: in bull markets, but facing bear resistances

WTI Crude Oil chart

After a bit of sideways consolidation near the upper edge of the 'support-resistance zone' (between 62 and 64), the daily bar chart pattern of WTI Crude Oil bounced up to touch a high of 66.60 on Apr 23 - its highest level in nearly 6 months.

The 'golden cross' of the 50 day EMA above the 200 day EMA technically confirmed a return to a bull market. However, overbought technical indicators, which showed negative divergences by touching lower tops, triggered a correction.

Oil's price dropped below the 'support-resistance zone' and its 20 day and 50 day EMAs, but bounced up after testing support from its 200 day EMA. Formation of a 'reversal day' bar (lower low, higher close) and a pullback inside the 'support-resistance zone' ought to encourage bulls.

Daily technical indicators are looking bearish after correcting overbought conditions. MACD is falling below its signal towards neutral zone. RSI has dropped below its 50% level. Slow stochastic has fallen to the edge of its oversold zone. 

Expect volatility and some consolidation in oil prices as the US government threatens to shut down Iran's oil exports by sending war ships to the Middle East.

On longer term weekly chart (not shown), oil's price bounced up after receiving strong support from its converging weekly EMAs, and closed in long-term bull territory. Weekly technical indicators are in bullish zones, but not showing much upward momentum. MACD is rising above its signal line. RSI is moving sideways above its 50% level. Slow stochastic has fallen from its overbought zone, and can trigger some consolidation or correction.

Brent Crude Oil chart

After a few days of sideways consolidation near the upper edge of the 'support-resistance zone' (between 70 and 72), the daily bar chart pattern of Brent Crude Oil broke out upwards on Apr 22, and rose to touch a 6 months high of 75.60 on Apr 25.

The 'golden cross' of the 50 day EMA above the 200 day EMA technically confirmed a return to a bull market. However, overbought technical indicators, and formation of a 'reversal day' bar (higher high, lower close), triggered a correction below the 'support-resistance zone' and the 20 day and 50 day EMAs.

Oil's price has since pulled back inside the 'support-resistance zone', and is expected to consolidate till Middle Eastern supplies stabilise.

Daily technical indicators are looking bearish to neutral after correcting overbought conditions. MACD is falling below its sliding signal line towards neutral zone. RSI is seeking support from its 50% level. Slow stochastic has fallen below its 50% level. 

On longer term weekly chart (not shown), oil's price bounced up after testing support from its converging 20 week and 50 week EMAs, and closed in long-term bull territory. Weekly technical indicators are in bullish zones, but not showing much upward momentum. MACD is rising above its signal line. RSI is moving sideways above its 50% level. Slow stochastic has slipped down from its overbought zone, and can trigger some consolidation or correction.

WTI and Brent Crude Oil charts: rallies stall temporarily at resistance zones

WTI Crude Oil chart

Note the following comments from the previous post on the daily bar chart pattern of WTI Crude Oil: "The zone between 62 and 64 had acted as a support zone during Apr-Aug '18. It is likely to act as a resistance zone for a while."

Oil's price managed to move above the resistance zone, and closed above the 64 level on Apr 8 and 10. Sliding volumes showed lack of follow-up buying. Oil's price has drifted down inside the resistance zone (between 60-62).

The impending 'golden cross' of the 50 day EMA above the 200 day EMA will technically confirm a return to a bull market. Expect oil's price to move higher after a bit of consolidation or correction.

Daily technical indicators are correcting overbought conditions. MACD is about to cross below its rising signal line in overbought zone. RSI has dropped from its overbought zone. Slow stochastic has fallen to the edge of its overbought zone. 

On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory for the third week in a row. Weekly technical indicators are looking bullish. MACD is rising above its signal line in bullish zone. RSI is moving sideways above its 50% level. Slow stochastic remains well inside its overbought zone, and can trigger some more correction or consolidation.

Brent Crude Oil chart

The daily bar chart pattern of Brent Crude Oil entered the resistance zone between 70-72 as expected, but has been consolidating sideways after failing to cross above the 72 level.

Oil's price is trading above its three EMAs in bull territory. The impending 'golden cross' of the 50 day EMA above the 200 day EMA will technically confirm a return to a bull market. 

Daily technical indicators are looking bullish and overbought. MACD is rising above its sliding signal line in overbought zone. RSI has dropped down from its overbought zone. Slow stochastic is inside its overbought zone. 

Some more consolidation is possible before oil's price makes an attempt to move above the resistance zone.

On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory for the third straight week. Weekly MACD and RSI are in bullish zones. Slow stochastic is well inside its overbought zone, and can trigger some more consolidation or correction.

S&P 500 and FTSE 100 charts (Apr 12, 2019): bulls trying to wrest control

S&P 500 index chart pattern

The daily bar chart pattern of S&P 500 consolidated sideways within a 27 points range during the first four trading days, but formed an upward 'gap' to close above the 2900 level on Fri. Apr 12.

It was the first close above 2900 in more than 6 months. A new high is now within handshaking distance. But bears are still not ready to throw in the towel.

Trading pattern during the past 6 weeks has formed a bearish 'rising wedge' from which a downward breakout is likely. A correction will improve the technical 'health' of the chart - enabling the index to rise to a new high.

Daily technical indicators are looking bullish and overbought. MACD is moving sideways above its signal line. RSI is making another attempt to enter its overbought zone. Slow stochastic is well inside its overbought zone. 

All three EMAs are rising and the index is trading well 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 some correction or consolidation.

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market for the 11th week in a row. Weekly MACD is rising above its signal line bullish zone. RSI is moving up 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 during the week. The possibility was mentioned in last week's post.

The index touched the week's high of 7478 on Tue. Apr 9, but formed a 'reversal day' bar (higher high, lower close)  that triggered a mini correction towards the rising 20 day EMA on Thu. Apr 11.

A bounce up on Fri. Apr 12 to a close at 7437 could not prevent FTSE from sustaining a 10 points loss for the week. However, the 'golden cross' of the 50 day EMA above the 200 day EMA has technically confirmed a return to a bull market.

Daily technical indicators are in bullish zones but not showing much upward momentum. MACD is sliding down towards its rising signal line. RSI remains below the edge of its overbought zone. Stochastic is inside its overbought zone. Some more consolidation is possible.

The BrExit 'can' has been kicked down the road. Since UK will now remain in the EU till Oct 31st, they will participate in the European parliamentary elections next month. This uncomfortable reality is dawning on Europeans. 

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 is rising above its signal line in bullish zone. RSI is rising towards its overbought zone. Stochastic is well inside its overbought zone.

S&P 500 and FTSE 100 charts (Apr 05, 2019): rising to new highs

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 convincing move above 2875 will clear the path for the index to touch a new high. Bears may continue to yield ground grudgingly."

After facing resistance near the 2875 level during the first four trading days, the index rose to close at 2893 on Fri. Apr 5 - gaining 2% on a weekly closing basis. It seems just a matter of time before the index rises to a new lifetime high.

Daily technical indicators are looking bullish and overbought. MACD is rising above its signal line. RSI looks ready to enter its overbought zone. Slow stochastic is inside its overbought zone. 

All three EMAs are moving up, 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 some correction or consolidation.

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market for the tenth week in a row. Weekly MACD is rising above its signal line bullish zone. RSI is moving up above its 50% level. Slow stochastic remains well inside its overbought zone.

FTSE 100 index chart pattern

The daily bar chart pattern of FTSE 100 moved convincingly above its three EMAs and touched a high of 7461 on Fri. Apr 5, but closed just below 7450 - with a gain of 2.3% on a weekly closing basis.

The 50 day EMA is about to cross above the 200 day EMA - the 'golden cross' that will technically confirm a return to a bull market. Trading volumes on Thu. and Fri. were below the long-term average. Some correction or consolidation is possible.

Daily technical indicators are looking bullish. MACD has crossed above its signal line in bullish zone. RSI is hovering near the edge of its overbought zone. Stochastic is inside its overbought zone. 

With just 5 days to go until UK is due to leave the EU, Labour Party is hoping for further talks with the government to finalise a BrExit deal. Only a cross-party pact will get the support of a majority of MPs, according to PM May.

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 looking bullish. MACD is rising above its signal line and has entered bullish zone. RSI is rising towards its overbought zone. Stochastic is well inside its overbought zone.