Technical Analysis - US 100 extends decline as negative momentum intensifies

The US 100 stock index (cash) has been trending downwards in the short term since its long-term upside trajectory peaked at the all-time high of 16,767 in late November. Moreover, the price has crossed beneath the Ichimoku cloud, while its 50-day simple moving average (SMA) is ticking downwards, further reinforcing the index’s near-term bearish picture.

The resumption of the short-term retreat is the most likely scenario as the momentum indicators depict that selling forces have taken control. The MACD histogram is found below both zero and its red signal line, while the stochastic oscillator is sloping downwards after posting a bearish cross.

If the price continues its descent, immediate support might be encountered at the recent low of 15,160. Breaching this barrier, the bears could target the 15,000 psychological mark, which overlaps with the 200-day SMA. Failing to stop there, the price may dip towards 14,440, a violation of which would send the price to challenge the 14,000 obstacle.

On the flipside, should the positive momentum strengthen and the price reverses upwards, buyers may meet initial resistance at the recent high of 15,640. Further advancements could halt at the 16,050 barrier. Conquering this barricade, the price could jump towards 16,450 before the spotlight turns to the record-high of 16,767.

Overall, the outlook for the US 100 index remains bearish as it seems to be lacking the necessary momentum to recoup its recent losses. Therefore, a profound dive beneath 14,440 would erase its medium-term bullish structure.

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