Technical Analysis – US 500 index gives up gains after fresh all-time highs
January 4, 2021 4:29 pm
The US 500 stock index (cash) added another record high of 3,780 to its collection in the first trading day of the year before giving up all the gains to test the 20-period simple moving average (SMA) in the four-hour chart.
Unless the 20-period SMA catches the fall around 3,740, the decline could get new legs within the bearish Bollinger band area, shifting the spotlight towards the 3,723 – 3,710 support zone. Beneath the latter, the 100-period SMA at 3,700 may attempt to prevent another negative extension towards the 3,690 barrier.
While technically the above scenario is more likely given the downside reversal in the RSI and the negative slope in the Stochastics, a rebound back above 3,752 may help the market to retest today’s all-time high of 3,780. Moving higher, the 3,800 psychological number could be the next target.
In short, the US 500 index is expected to shift to slower gear in the near term, where a close below 3,740 may confirm another extension lower.
The US 500 stock index (cash) added another record high of 3,780 to its collection in the first trading day of the year before giving up all the gains to test the 20-period simple moving average (SMA) in the four-hour chart.
Unless the 20-period SMA catches the fall around 3,740, the decline could get new legs within the bearish Bollinger band area, shifting the spotlight towards the 3,723 – 3,710 support zone. Beneath the latter, the 100-period SMA at 3,700 may attempt to prevent another negative extension towards the 3,690 barrier.
While technically the above scenario is more likely given the downside reversal in the RSI and the negative slope in the Stochastics, a rebound back above 3,752 may help the market to retest today’s all-time high of 3,780. Moving higher, the 3,800 psychological number could be the next target.
In short, the US 500 index is expected to shift to slower gear in the near term, where a close below 3,740 may confirm another extension lower.
The post Technical Analysis – US 500 index gives up gains after fresh all-time highs first appeared on XM.
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