Footsie Breaks Key Support (D)
Created on Tuesday, 03 March 2015 00:29
Written by Austin Galt
The Footsie has just broken some key support I have been monitoring. We already know from previous analysis of the longer term charts that this bull market is on its knees. So let’s look in close at the daily chart to see what this potential kill shot looks like.
FOOTSIE DAILY CHART
We already know there is a massive triple top on the longer term charts going all the way back to the 1999 top at 6950. Price looks to have just made a marginal false break top at 6974 on the 2nd March.
The lower indicators, the Relative Strength Indicator (RSI), Stochastic, Moving Average Convergence Divergence (MACD) and Momentum, are all showing multiple bearish divergences.
The Bollinger Bands show price is now back to the middle band but the difference this time is the dominance with which price made the move. A big bearish candle today is a stark contrast to the other times over the last couple of months where price has found support at this band.
The key support I have been monitoring stems from the Parabolic Stop and Reverse (PSAR) indicator which pertains to the dots. I have added two sets of dots – one a tight setting and one a loose setting.
We can see price busted the tight setting support yesterday – the high day. Today price confirmed the bear alarm by busting the loose setting support. This looks to be the kill shot. The bull is dead!