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Monday, September 4, 2017

S&P 500 and FTSE 100 charts (Sep 01 '17): bears retreat as bulls charge back

S&P 500 index chart pattern


The daily bar chart pattern of S&P 500 continued to face resistance from the 'Support/Resistance zone' (between 2450 & 2460) and the 20 day EMA on Mon. & Tue. (Aug 28 & 29). On Tue., the index dropped to seek support from the 'GAP', but bounced up to close at its 50 day EMA.

On Wed. Aug 30, the index broke out above its 20 day EMA and the (purple) down trend line, but failed to break out above the 'Support/Resistance zone'. 

A volume surge on Thu. Aug 31 propelled the index convincingly above the 'Support/Resistance zone' with a small upward 'gap' that technically validated the upward breakout.

On Fri. Sep 1, the index touched a high of 2480 before closing slightly lower with a 1.4% gain on a weekly closing basis. The down trend has been reversed.

Daily technical indicators are looking bullish. MACD has crossed above its signal line to enter bullish zone. RSI has moved above its 50% level into bullish zone. Slow stochastic has entered its overbought zone, and may trigger a pullback towards the 'Support/Resistance zone'.

The index is trading above its three EMAs in a bull market, and should touch new highs soon. Regular provocations from North Korea remain a concern for bulls. 

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones and showing upward momentum.

FTSE 100 index chart pattern



The daily bar chart pattern of FTSE 100 slipped below the support level of 7300 intra-day on Aug 29, but bounced up to close higher. On Aug 31, the index moved above its 20 day and 50 day EMAs and closed above the (purple) down trend line.

On Fri. Sep 1, the index crossed above the 7450 level intra-day but closed at 7438 with a 0.5% gain on a weekly closing basis. The (purple) down trend line has been breached for the second time in a month, but it is not a convincing breach yet.

Daily technical indicators are looking bullish. MACD has crossed above its signal line, but remains in bearish zone. RSI has moved above its 50% level into bullish zone. Slow stochastic has entered its overbought zone. That has triggered a pullback to the down trend line (at the time of writing this post).

The index is trading above its three EMAs in a bull market. However, a convincing move above the Aug 8 '17 top of 7552 is required if bulls are to regain control of the chart. 

On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market. Weekly MACD and RSI are moving sideways in bullish zones. Slow stochastic is in bearish zone but showing upward momentum.

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