The 04/19/23 blog “UK 100 Near Sell Point – 04/19/23” noted “The UKX has reached the resistance zone and a small rally could complete the Minor wave “2” formation.”
The 3 – hour UK 100 (UKX) chart courtesy of Trading View updates the action.
The upper end of chart resistance was estimated to be 7,975, the high on 04/21/23 was 7,936.
The 3 – hour MACD has a bearish divergence on lines and the Histogram.
The 3-hour RSI has bearish divergences and is below its moving average line. Daily MACD only has a bearish divergence on the Histogram. Daily RSI has no bearish divergence.
After the S&P 500- primary 01/04/22 peak, the 03/29/23 bear rally top had no daily divergences on either the RSI or MACD. The bear rally top on 08/16/22 only had a daily MACD histogram bearish divergence. The same phenomenon of bear tops without daily momentum divergences could now be occurring with the UKX.
If the UKX Minor wave “2” top has been made, it implies at least a multi – week decline back to the October 2022 bottom. Longer-tern the UKX could drop much lower.