Technical Analysis – US 500 index hovers around 200-day SMA
March 20, 2023 2:27 pm
The US 500 stock index (cash) experienced a significant pullback after its advance got rejected at the 4,195 region. Even though the price bounced off the 3,812 zone and attempted a rebound, the 200-day simple moving average (SMA) has repeatedly curbed the upside.
The short-term oscillators currently suggest that bearish forces are in control. Specifically, the RSI has flatlined below its 50-neutral mark, while the MACD histogram remains below both zero and its red signal line. What’s more, the US 500 index has respected multiple times the Fibonacci levels drawn from the 2,183-4,818 uptrend that extended from the pandemic low till the all-time high in November 2021.
If bearish pressures intensify, the price could encounter immediate support at the 3,870 territory. Should that barricade fail, attention might shift towards the 38.2% Fibo of 3,812 before the December low of 3,763 gets tested. Failing to halt there, the index may face the 3,697 hurdle.
On the flipside, bullish actions might send the price to test the 3,975 territory. Conquering this barricade, the spotlight could turn to 4,016, which overlaps with the 50-day SMA. Breaking above that barrier, the price could ascend towards 4,102, or higher to test the September peak of 4,155.
To conclude, the US 500 index seems to be lacking the necessary momentum to slice through its 200-day SMA after rebounding from its latest decline. Hence, its downtrend could accelerate in the case that the 38.2% Fibo of 3,812 gets violated.
The US 500 stock index (cash) experienced a significant pullback after its advance got rejected at the 4,195 region. Even though the price bounced off the 3,812 zone and attempted a rebound, the 200-day simple moving average (SMA) has repeatedly curbed the upside.
The short-term oscillators currently suggest that bearish forces are in control. Specifically, the RSI has flatlined below its 50-neutral mark, while the MACD histogram remains below both zero and its red signal line. What’s more, the US 500 index has respected multiple times the Fibonacci levels drawn from the 2,183-4,818 uptrend that extended from the pandemic low till the all-time high in November 2021.
If bearish pressures intensify, the price could encounter immediate support at the 3,870 territory. Should that barricade fail, attention might shift towards the 38.2% Fibo of 3,812 before the December low of 3,763 gets tested. Failing to halt there, the index may face the 3,697 hurdle.
On the flipside, bullish actions might send the price to test the 3,975 territory. Conquering this barricade, the spotlight could turn to 4,016, which overlaps with the 50-day SMA. Breaking above that barrier, the price could ascend towards 4,102, or higher to test the September peak of 4,155.
To conclude, the US 500 index seems to be lacking the necessary momentum to slice through its 200-day SMA after rebounding from its latest decline. Hence, its downtrend could accelerate in the case that the 38.2% Fibo of 3,812 gets violated.
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