Technical Analysis – US 500 index softly up after upbeat retail sales
US 500 stock index maintains muted positive tone
Short-term bias on the bullish side; eyes on 5,680
Unlike the US 30 index, the US 500 index could not renew its record rally on Tuesday, retaining a muted positive tone around 5,650.
The bulls, however, might still have their chance, especially after the close above the one-year-old resistance line at 5,600. If that floor holds, the price might attempt to push above the short-term ascending line at 5,683 and towards the 5,800-5,860 territory where the 261.8% Fibonacci extension of April’s downfall is placed.
Technically, another bullish action cannot be ruled out as the RSI and the MACD remain within the positive area. Yet, with the former hovering above 70 and the latter testing its previous highs, additional gains might be limited.
Nevertheless, only a close below the 20-day simple moving average at 5,530 could press the price towards the support trendline at 5,487. Even lower, the focus might shift to the 5,430 constraining region and the 50-day SMA.
In brief, the US 500 stock index has the potential to drive into uncharted territory in the short-term as long as it holds above 5,600. Only a decisive close below the 20-day SMA could dampen market sentiment.Related Assets
Latest News
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.
