Technical Analysis – US 500 index bulls hold control above 6,000
- US 500 rebounds from uptrend line
- RSI approaches 70 level; MACD tries to surpass its trigger line
The US 500 cash index is creating the sixth consecutive green day, following the bounce off the short-term uptrend line and the 5,855 support level. The price is currently approaching the previous all-time peak of 6,052 and the 161.8% Fibonacci extension level of the down leg from 5,720 to 5,115 at 6,100.
On the other hand, a retreat may send traders towards the 20-day simple moving average (SMA) at 5,924 ahead of the previous bottom at 5,855. A penetration of the diagonal line could endorse the negative scenario, meeting the 5,800 mark and the 5,720 support region.
According to technical oscillators, the RSI is extending its upside move above the neutral threshold of 50, while the MACD is ready to cross above its trigger line, holding beyond the zero level.
All in all, as long as the US 500 index remains above the long-term uptrend line and, more importantly, above the 200-day SMA, then the outlook remains strongly positive in the bigger picture.
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