Technical Analysis – US 500 index challenges 50-day SMA
September 11, 2023 1:26 pm
US 500 index rebounds from its September low
Bulls attack the 50-day SMA
Momentum indicators point to short-term gains
The US 500 stock index (cash) is currently testing the 50-day simple moving average (SMA), with short-term oscillators endorsing this latest advance. The MACD jumped above its red signal line in the positive zone, while the RSI is hovering above the 50-neutral threshold.
If buyers propel the price above the 50-day SMA, initial resistance could be found at the recent rejection region of 4,540. Surpassing that zone, the index might ascend towards the 16-month peak of 4,606. A break above that territory could open the door for the March 2022 high of 4,637.
Alternatively, should the bears regain the upper hand, the recent support of 4,429 may act as the first line of defence. Sliding beneath that floor, the price could challenge 4,342, which is the 23.6% Fibonacci retracement of the 3,486-4,606 upleg. If that barricade fails, attention might shift to the 38.2% Fibo of 4,178, which coincides with the 200-day SMA.
Overall, the US 500 index has regained traction, but bulls should not get excited before they conquer the 50-day SMA.
US 500 index rebounds from its September low
Bulls attack the 50-day SMA
Momentum indicators point to short-term gains
The US 500 stock index (cash) is currently testing the 50-day simple moving average (SMA), with short-term oscillators endorsing this latest advance. The MACD jumped above its red signal line in the positive zone, while the RSI is hovering above the 50-neutral threshold.
If buyers propel the price above the 50-day SMA, initial resistance could be found at the recent rejection region of 4,540. Surpassing that zone, the index might ascend towards the 16-month peak of 4,606. A break above that territory could open the door for the March 2022 high of 4,637.
Alternatively, should the bears regain the upper hand, the recent support of 4,429 may act as the first line of defence. Sliding beneath that floor, the price could challenge 4,342, which is the 23.6% Fibonacci retracement of the 3,486-4,606 upleg. If that barricade fails, attention might shift to the 38.2% Fibo of 4,178, which coincides with the 200-day SMA.
Overall, the US 500 index has regained traction, but bulls should not get excited before they conquer the 50-day SMA.
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