Technical Analysis – US 500 index recoups some losses in short-term
- US 500 index rebounds off 50-day SMA
- RSI and MACD weaken their momentum
The US 500 index has paused its bearish correction near the 5,720 support level and the 50-day simple moving average (SMA).
The price is currently standing beneath the short-term uptrend line, with the technical oscillators indicating weakening momentum. The RSI is moving sideways beneath the neutral threshold of 50, while the MACD is heading south below its trigger line and near the zero level.
In case of steeper decreases, it could drive the market until the 5,673 barrier before testing the long-term ascending trend line around 5,550. If the bears gain control over the broader picture, the index could potentially reach the 200-day SMA at 5,420.
In the positive scenario, a climb beyond the 5,800 resistance could lead the market towards the 20-day SMA at 5,845 ahead of the all-time peak of 5,926, printed on October 17. Further upside movement could see the 6,000 psychological mark before challenging the 161.8% Fibonacci extension level of the down leg from 5,720 to 5,115 at 6,100.
Overall, the US 500 index maintains a strong bullish tendency in the long-term view, with the market maintaining a strong position above both the long-term rising trend line and the 200-day SMA. To confirm an upside recovery in the near term, a climb above the 5,800 resistance is necessary.
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