Technical Analysis – US 500 index stays buoyant as negative pressures evaporate



The US 500 stock index (Cash) appears to remain upbeat, having stretched to a fresh all-time high of 4,381, after a recent but only minor pullback to a low of 4,287, residing amid the bullish Ichimoku lines presently at 4,332 and 4,265. The simple moving averages (SMAs) are maintaining firm northbound bearings, providing defences to the positive structure.

The short-term oscillators are also indicating price’s preference to steer higher, reflecting the pickup in positive sentiment. The MACD, north of the zero mark, is holding above its red trigger line, while the RSI has found its feet in the positive zone and is heading for the overbought level of 70. The stochastic %K line has regained a positive charge and is overstepping its %D line into the overbought territory, promoting upside price action.

Ticking higher, the index may encounter preliminary resistance at the 4,400 handle. Should risk appetite intensify, the index may create headways with buyers navigating towards the 4,500 and 4,600 barriers, respectively.

Otherwise, if sellers secure a lead, an early support zone could develop from the red Tenkan-sen line at 4,332 until the 50-day SMA at 4,235. Retreating below this region, the price may meet the Ichimoku cloud and an adjoining support band formed between the 4,161 low and the 100-day SMA at 4,124. Sinking past these barricades could then drive the price to challenge the support section of 4,000-4,049.

Overall, the US 500 index is sustaining a stable uptrend above the SMAs and the 4,124-4,161 boundary.

Latest News

Technical Analysis – JP 225 index pins new multi-year high; bearish divergence detected





Technical Analysis – US 100 index slides, but uptrend still in play

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.