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S&P 500 index chart pattern
After a day's indecision on Tue. Jan 9 (by forming a 'doji' candlestick pattern) and the briefest of corrections on Wed. Jan 10, the daily bar chart pattern of S&P 500 rose to touch a new high (2788) on Fri. Jan 12.
All three EMAs are rising, and the index is trading way above them in a bull market. Daily technical indicators are well inside their overbought zones. Slow stochastic is showing negative divergence by failing to touch a new high with the index.
Note that an index can remain overbought for long periods. That doesn't mean one needs to jump in and buy. It may be prudent to be fearful when everyone else seems greedy and take some profits off the table.
On longer term weekly chart (not shown), the index closed at a new high - way above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are looking very overbought. Slow stochastic continues to show negative divergence by failing to rise higher.
FTSE 100 index chart pattern
After a day's correction on Mon. Jan 8, the daily bar chart pattern of FTSE 100 soared to touch a new high (7792) on Fri. Jan 12. Bulls are buying at every dip.
All three EMAs are rising, and the index is trading above them in a bull market. Daily technical indicators are looking overbought and can trigger some consolidation or correction. (At the time of writing this post, FTSE is trading 5 points lower.)
Partial profit booking may be a good idea for conservative investors. Bravehearts can ride the bull wave with a trailing stop-loss.
On longer term weekly chart (not shown), the index touched a new high and closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD and RSI are in bullish zones and showing upward momentum. Slow stochastic is looking quite overbought and can trigger a correction.
After a day's indecision on Tue. Jan 9 (by forming a 'doji' candlestick pattern) and the briefest of corrections on Wed. Jan 10, the daily bar chart pattern of S&P 500 rose to touch a new high (2788) on Fri. Jan 12.
All three EMAs are rising, and the index is trading way above them in a bull market. Daily technical indicators are well inside their overbought zones. Slow stochastic is showing negative divergence by failing to touch a new high with the index.
Note that an index can remain overbought for long periods. That doesn't mean one needs to jump in and buy. It may be prudent to be fearful when everyone else seems greedy and take some profits off the table.
On longer term weekly chart (not shown), the index closed at a new high - way above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are looking very overbought. Slow stochastic continues to show negative divergence by failing to rise higher.
FTSE 100 index chart pattern
After a day's correction on Mon. Jan 8, the daily bar chart pattern of FTSE 100 soared to touch a new high (7792) on Fri. Jan 12. Bulls are buying at every dip.
All three EMAs are rising, and the index is trading above them in a bull market. Daily technical indicators are looking overbought and can trigger some consolidation or correction. (At the time of writing this post, FTSE is trading 5 points lower.)
Partial profit booking may be a good idea for conservative investors. Bravehearts can ride the bull wave with a trailing stop-loss.
On longer term weekly chart (not shown), the index touched a new high and closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD and RSI are in bullish zones and showing upward momentum. Slow stochastic is looking quite overbought and can trigger a correction.
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