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.

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