Technical Analysis – US 500 index rebounds off 2-month low below 5,000
April 23, 2024 9:27 am
US 500 index erases bearish correction
MACD and RSI show mixed signals
The US 500 cash index is recouping some losses after it lost almost 6% from the 5,240 high. The price dived to a fresh two-month low of 4,924 but failed to have a closing day beneath the 100-day simple moving average (SMA). The market has been in a downside correction in the short-term view with the MACD endorsing this view as it is standing beneath its trigger and zero lines; however, the RSI is pointing upwards after the pullback near the 30 level.
In case of an upward attempt, the index would likely meet resistance at the 50-day SMA, currently around 5,121 ahead of the 5,140 resistance level. A break higher would ease the downside pressure, while a climb above the 5,240 bar and the all-time high of 5,282 would help turn the short-term bias to a bullish one.
In the negative scenario, immediate support to further declines may take the price until the 4,924-4,950 support region before resting near the 4,800-4,840 restrictive area.
Overall, the long-term outlook remains positive as the market is still holding above the 200-day SMA, and the short-term bearish move may come to an end.
US 500 index erases bearish correction
MACD and RSI show mixed signals
The US 500 cash index is recouping some losses after it lost almost 6% from the 5,240 high. The price dived to a fresh two-month low of 4,924 but failed to have a closing day beneath the 100-day simple moving average (SMA). The market has been in a downside correction in the short-term view with the MACD endorsing this view as it is standing beneath its trigger and zero lines; however, the RSI is pointing upwards after the pullback near the 30 level.
In case of an upward attempt, the index would likely meet resistance at the 50-day SMA, currently around 5,121 ahead of the 5,140 resistance level. A break higher would ease the downside pressure, while a climb above the 5,240 bar and the all-time high of 5,282 would help turn the short-term bias to a bullish one.
In the negative scenario, immediate support to further declines may take the price until the 4,924-4,950 support region before resting near the 4,800-4,840 restrictive area.
Overall, the long-term outlook remains positive as the market is still holding above the 200-day SMA, and the short-term bearish move may come to an end.
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