Technical Analysis – US 500 attempts to revisit 2023 highs
September 4, 2023 12:28 pm
The US 500 stock index (cash) had been undergoing a pullback after marching to a fresh 16-month high of 4,606 on July 27. However, the index managed to find its footing at 4,342, which is the 23.6% Fibonacci retracement of the 3,486-4,606 upleg, and storm back higher towards its recent peaks.
The short-term oscillators currently suggest that bullish forces are intensifying. Specifically, the MACD is strengthening above zero and its red signal line, while the RSI is advancing steadily above its 50-neutral mark.
If buying pressures persist, the bulls could target the recent 16-month peak of 4,606. A break above that zone could open the door for the March 2022 high of 4,637. Even higher, the January 2022 resistance region of 4,750 could prove to be a tough one for the price to overcome.
Alternatively, should the price drift lower, the previous resistance of 4,460 may now serve as initial support. Diving beneath that zone, the index may descend towards the 23.6% Fibo of 4,342, which rejected further price declines in mid-August. Should that barricade also fail, attention might shift to the 38.2% Fibo of 4,178, which lies very close to the 200-day simple moving average (SMA).
Overall, the US 500 index has regained traction, appearing ready to re-test its 2023 peak. Nevertheless, a break below the 50-day SMA could attract some selling interest.
The US 500 stock index (cash) had been undergoing a pullback after marching to a fresh 16-month high of 4,606 on July 27. However, the index managed to find its footing at 4,342, which is the 23.6% Fibonacci retracement of the 3,486-4,606 upleg, and storm back higher towards its recent peaks.
The short-term oscillators currently suggest that bullish forces are intensifying. Specifically, the MACD is strengthening above zero and its red signal line, while the RSI is advancing steadily above its 50-neutral mark.
If buying pressures persist, the bulls could target the recent 16-month peak of 4,606. A break above that zone could open the door for the March 2022 high of 4,637. Even higher, the January 2022 resistance region of 4,750 could prove to be a tough one for the price to overcome.
Alternatively, should the price drift lower, the previous resistance of 4,460 may now serve as initial support. Diving beneath that zone, the index may descend towards the 23.6% Fibo of 4,342, which rejected further price declines in mid-August. Should that barricade also fail, attention might shift to the 38.2% Fibo of 4,178, which lies very close to the 200-day simple moving average (SMA).
Overall, the US 500 index has regained traction, appearing ready to re-test its 2023 peak. Nevertheless, a break below the 50-day SMA could attract some selling interest.
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