Technical Analysis – US 500 index pulls back after advance pauses
April 24, 2023 10:27 am
The US 500 stock index (cash) has been on a steady uptrend since mid-March, slicing through both its 50 and 200-day simple moving averages (SMAs). However, this recent rebound faltered just shy of the 2023 peak of 4,195, with the price experiencing a moderate downside correction.
The short-term oscillators are reflecting this loss of positive momentum. Specifically, the MACD histogram dropped below its red signal line but remains in the positive zone, while the stochastic oscillator is descending near the 20-oversold territory. Nevertheless, the price is currently way beyond the Ichimoku cloud, hinting that the technical picture has not turned bearish yet.
Should negative tendencies persist, the price could descend towards the recent support of 4,070. A break below that region might shift the spotlight to 4,006, which is the 61.8% Fibonacci retracement of the 4,325-3,489 downtrend. Even lower, the bears could aim for the 50.0% Fibo of 3,907 before the 38.2% Fibo of 3,808, which coincides with the March bottom, gets tested.
On the flipside, bullish actions could propel the price towards the 78.6% Fibo of 4,146. Surpassing that zone, the price may edge higher to challenge the 2023 peak of 4,195. Further advances could then come to a halt at the August high of 4,325.
To conclude, the US 500 index has been experiencing a pullback after its short-term uptrend encountered resistance near the 2023 high. However, the price currently appears to retain its bullish structure and only a break below the 200-day SMA could shift the outlook to bearish
The US 500 stock index (cash) has been on a steady uptrend since mid-March, slicing through both its 50 and 200-day simple moving averages (SMAs). However, this recent rebound faltered just shy of the 2023 peak of 4,195, with the price experiencing a moderate downside correction.
The short-term oscillators are reflecting this loss of positive momentum. Specifically, the MACD histogram dropped below its red signal line but remains in the positive zone, while the stochastic oscillator is descending near the 20-oversold territory. Nevertheless, the price is currently way beyond the Ichimoku cloud, hinting that the technical picture has not turned bearish yet.
Should negative tendencies persist, the price could descend towards the recent support of 4,070. A break below that region might shift the spotlight to 4,006, which is the 61.8% Fibonacci retracement of the 4,325-3,489 downtrend. Even lower, the bears could aim for the 50.0% Fibo of 3,907 before the 38.2% Fibo of 3,808, which coincides with the March bottom, gets tested.
On the flipside, bullish actions could propel the price towards the 78.6% Fibo of 4,146. Surpassing that zone, the price may edge higher to challenge the 2023 peak of 4,195. Further advances could then come to a halt at the August high of 4,325.
To conclude, the US 500 index has been experiencing a pullback after its short-term uptrend encountered resistance near the 2023 high. However, the price currently appears to retain its bullish structure and only a break below the 200-day SMA could shift the outlook to bearish
Related Posts: