Technical Analysis – US 500 index may pick up steam above all-time high

Melina Deltas, XM Investment Research Desk

The US 500 index retreated below the all-time high of 2964 in the previous couple of days, testing the red Tenkan-sen line in the daily timeframe. The 200-simple moving average (SMAs) remains flat, failing to confirm the long-term bullish picture. The MACD is extending is bullish run with weak momentum while the RSI is pointing north in the positive zone.

A closing price above the all-time high (2964) could trigger another bullish phase more likely towards the 3000 psychological mark.

Should the market correct to the downside, the 50-SMA currently at 2880 could provide nearby support, while lower, a more interesting battle could start near the lower surface of the Ichimoku cloud and the 23.6% Fibonacci retracement level of the upleg from 2332 to 2964 around 2815.

Meanwhile, in the six-month time frame the outlook is bullish as long as the price posts higher highs and higher lows. However, in the short-term view, the index looks to be slightly neutral within 2723 and 2964.