- US 500 holds above ascending trend line
- But technical oscillators losing some ground
The US 500 (cash) index was challenging the all-time high of 5,050.96 in the previous sessions, before pulling lower near the 5,000 round number. The market is holding slightly above the steep ascending trend line, which has been drawn from October 27.
Technically, the bulls might still be in town as the RSI is still clearly above its 50 neutral mark despite losing some ground. But any gains could be short-lived as the MACD seems to have peaked in the positive territory and is heading south beneath its trigger line.
In the event the price stays resilient above the 5,000 critical level and the rising trend line, the bulls might push for a close above the record peak of 5,050.96, heading towards the next psychological marks, such as 5,100 and 5,200.
However, if downside pressures resume, the index will remain attractive unless it exits the bullish formation below the 161.8% Fibonacci extension level of the down leg from 4,100 to 4,600 at 4,920. If that bearish scenario is unveiled, selling forces could intensify towards the 4,800-4,840 support area, which encapsulates the 50-day simple moving average (SMA). Then, additional losses from there could retest 4,715 barricade.
In a nutshell, the US 500 index may remain supported in the coming sessions, though room for improvement could be limited before the next bearish round takes place, probably beneath the uptrend line.
