Technical Analysis – US 500 index drops below 23.6% Fibonacci
September 25, 2023 2:26 pm
US 500 index posts fresh 3-month low in today’s session
Bears eye the ascending 200-day SMA
Momentum indicators suggest that the recent decline could be overstretched
The US 500 stock index (cash) has been experiencing a strong pullback following its rejection near the 50-day simple moving average (SMA) in mid-September. However, the aggressive selloff could be over soon as the momentum indicators are hinting at oversold conditions.
If sellers push the price lower, initial support could be met at 4,178, which is the 38.2% Fibonacci retracement of the 3,486-4,606 upleg. Should that barricade fail, attention might shift to the 50.0% Fibo of 4,046. Diving beneath that floor, the price may then test the 61.8% Fibo of 3,914.
On the flipside, bullish actions could propel the price towards the 23.6% fibo of 4,342. Further advances could then come to a halt at the recent support of 4,429, which might serve as resistance in the future. A break above that territory could open the door for the September high of 4,540.
Overall, the US 500 index has been facing strong downside pressures in the past few daily sessions, declining to a fresh three-month low. However, traders should not rule out an impending bounce as the index has approached oversold conditions.
US 500 index posts fresh 3-month low in today’s session
Bears eye the ascending 200-day SMA
Momentum indicators suggest that the recent decline could be overstretched
The US 500 stock index (cash) has been experiencing a strong pullback following its rejection near the 50-day simple moving average (SMA) in mid-September. However, the aggressive selloff could be over soon as the momentum indicators are hinting at oversold conditions.
If sellers push the price lower, initial support could be met at 4,178, which is the 38.2% Fibonacci retracement of the 3,486-4,606 upleg. Should that barricade fail, attention might shift to the 50.0% Fibo of 4,046. Diving beneath that floor, the price may then test the 61.8% Fibo of 3,914.
On the flipside, bullish actions could propel the price towards the 23.6% fibo of 4,342. Further advances could then come to a halt at the recent support of 4,429, which might serve as resistance in the future. A break above that territory could open the door for the September high of 4,540.
Overall, the US 500 index has been facing strong downside pressures in the past few daily sessions, declining to a fresh three-month low. However, traders should not rule out an impending bounce as the index has approached oversold conditions.
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