I think it is important to signal that FTSE and S&P are
forming topping patterns on the weekly chart.
Bottom line: monitor support levels closely because a break
would mean that the cyclical (bullish) trend that started in 2011 has ended.
analysis
Both indices had weekly divergences with the respective MACD
indicator for a while and have recently started to weaken.
The s&P shows a clear rising wedge formation (bearish
reversal pattern) while the FTSE has a diamond/head and shoulder (bearish
reversal as well).
What I’ve noticed looking at them on a daily basis, is that
they have been so far unable to move above previous highs and we have now a
sequence of lower highs and lower lows, either intraday (SPX) or on a daily
basis (FTSE).
In both cases we have clear support levels which have not
been broken yet: 6000 on the FTSE and 1600 on the S&P (see charts below).
FTSE100
S&P500
