S&P 500 and FTSE 100 charts (Nov 30, 2018): bulls trying to regain control


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S&P 500 index chart pattern

The following remark was made in last week’s post on the daily bar chart pattern of S&P 500: “…Friday’s curtailed trading formed a ‘gravestone doji’ candlestick pattern, which can lead to a pullback towards the plummeting 20 day EMA.”

The expected pullback turned into a sharp rally. The index closed above its three EMAs in bull territory on Fri. Nov 30. Bulls managed to prevent the ‘death cross’ (of the 50 day EMA below the 200 day EMA) for the time being.

The next hurdle for bulls is the previous (Nov 7) index top of 2815. Bears can be expected to put up some resistance there – as they had done in Oct ’18. 

Daily technical indicators are turning bullish. MACD is rising above its signal line in bearish zone. RSI has just crossed above its 50% level. Slow stochastic is rising towards its overbought zone. Some more near-term upside is likely. 

On longer term weekly chart (not shown), the index closed just below its sliding 20 week EMA, but above its 50 week and 200 week EMAs in a long-term bull market. Weekly technical indicators are in bearish zones. MACD is falling below its signal line. RSI is facing resistance from its 50% level. Slow stochastic is falling below its 50% level.

FTSE 100 index chart pattern


The daily bar chart pattern of FTSE 100 consolidated sideways during the week, and continued to face resistance from its 20 day EMA. However, it appears to be forming a ’rounding bottom’ reversal pattern.

Though the index closed below its three EMAs in bear territory, the probable acceptance of the BrExit deal by all parties concerned, plus the fact that US and China have agreed not to escalate their trade war have brought a sea change in market sentiments.

(At the time of writing this post, the index is trading almost 150 points higher, and has moved above its 20 day and 50 day EMAs.)

Daily technical indicators are looking bullish. MACD is rising above its signal line in bearish zone. RSI is above its 50% level. Stochastic has entered its overbought zone. Some near-term upside is likely. 

On longer term weekly chart (not shown), the index closed below its three weekly EMAs in long-term bear territory. Weekly technical indicators are in bearish zones, but showing upward momentum. MACD has started rising below its signal line. RSI and Stochastic are rising towards their respective 50% levels.

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