Technical Analysis – US 500 index posts fresh 9-month peak
May 29, 2023 12:27 pm
The US 500 stock index (cash) has been in an uptrend since mid-March, slicing through crucial technical regions such as its 50- and 200-day simple moving averages (SMAs). In addition, the index jumped to a fresh nine-month high of 4,232 in today’s session before paring some gains.
The short-term oscillators are endorsing the latest upside move. Specifically, the MACD jumped above its red signal line in the positive region, while the RSI is flatlining above its 50-neutral mark.
Should the price attempt another advance, the nine-month peak of 4,232, which overlaps with the July 2021 bottom, could act as initial resistance. Conquering this barricade, the bulls might then challenge the October 2021 low of 4,270. A violation of that zone could open the door for the August 2022 high of 4,325.
On the flipside, if the index experiences a pullback, immediate support could be found at 4,146, which is the 78.6% Fibonacci retracement of the 4,325-3,489 downtrend. Piercing through that wall, the price could challenge 4,100 before the double-bottom region of 4,048 comes under scrutiny. A break below the latter may trigger a retreat towards the 61.8% Fibo of 4,006.
In brief, the US 500 index stormed to a fresh nine-month high amid some positive developments regarding the US debt-ceiling negotiations. However, a downside correction should not be ruled out as the latest advance pushed the price above its upper Bollinger band, indicating that it approached overbought conditions.
The US 500 stock index (cash) has been in an uptrend since mid-March, slicing through crucial technical regions such as its 50- and 200-day simple moving averages (SMAs). In addition, the index jumped to a fresh nine-month high of 4,232 in today’s session before paring some gains.
The short-term oscillators are endorsing the latest upside move. Specifically, the MACD jumped above its red signal line in the positive region, while the RSI is flatlining above its 50-neutral mark.
Should the price attempt another advance, the nine-month peak of 4,232, which overlaps with the July 2021 bottom, could act as initial resistance. Conquering this barricade, the bulls might then challenge the October 2021 low of 4,270. A violation of that zone could open the door for the August 2022 high of 4,325.
On the flipside, if the index experiences a pullback, immediate support could be found at 4,146, which is the 78.6% Fibonacci retracement of the 4,325-3,489 downtrend. Piercing through that wall, the price could challenge 4,100 before the double-bottom region of 4,048 comes under scrutiny. A break below the latter may trigger a retreat towards the 61.8% Fibo of 4,006.
In brief, the US 500 index stormed to a fresh nine-month high amid some positive developments regarding the US debt-ceiling negotiations. However, a downside correction should not be ruled out as the latest advance pushed the price above its upper Bollinger band, indicating that it approached overbought conditions.
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