Technical Analysis – US 500 index stretches to fresh record high of 4,415

The US 500 stock index (Cash) is ticking back up after a minor pullback from its recently reached all-time high of 4,415. The positively charged 100- and 200-period simple moving averages (SMAs), along with the recouped elevation in the 50-period SMA’s slope, are endorsing upside momentum.

The bullish Ichimoku lines are reflecting a pause in positive price action, while the short-term oscillators are transmitting mixed signals in directional impetus. The MACD far above zero is dwindling towards its red trigger line, while the RSI is trying to improve in the bullish region. The stochastic oscillator’s negative charge seems to be abating somewhat, suggesting that upside forces are on the rise.

If the index regains buoyancy, initial resistance could arise around the fresh all-time high of 4,415. In the event the index navigates once again into uncharted waters, the ascent could falter around the 4,430 barrier, which happens to be the 123.6% Fibonacci extension of the corrective wave from 4,392-4,232. However, should buying orders intensify, the price may then challenge the 138.2% Fibo extension of 4,453 before piloting for the 150.0% Fibo extension of 4,472.

Alternatively, if sellers manage to dip the price below the red Tenkan-sen line at 4,398, preliminary support could develop at the 4,375-4,383 nearby boundary. However should the index slide beneath this obstacle, the price may target the 4,350 vital low, reinforced by the converged 50-and 100-period SMAs. From here, if negative pressures persist, the price could overshoot the blue Kijun-sen line at 4,338 and target the crucial support section of 4,300-4,320.

Summarizing, for the US 500 index to sustain a positive bearing, the price would need to persist above the SMAs and the 4,232 trough. That said, a close below the cloud and the 200-period SMA could suggest downside forces are growing.

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