The US 500 stock index is trimming its latest downfall in the four-hour chart after landing again on the ascending trendline and near its 50-period simple moving average (SMA).
Technically, the short-term bias is set to switch back to bullish as the price is trying to strengthen above its 20-period SMA, while the RSI and the MACD are also pushing efforts to gain momentum above their neutral levels.
A decisive close above the 3,500 level followed by a run towards the 3,533-3,549 resistance region is currently the main target for the pair. Beyond the latter, the index should fight the 3,578 hurdle, which it failed to successfully overcome early in September, in order to access the 3,600 uncharted zone.
Alternatively, traders could reduce exposure if the price retreats below the trendline currently seen around 3,480. Such a move would shift the spotlight straight to last week’s low of 3,439 in fears that any break lower would violate the upward pattern that started from the 3,209 bottom. In this case, the next stop could be around the 100-period SMA (3,412).
In brief, the US 500 index is expected to trade positive in the short term and above the ascending trendline, likely finding immediate resistance around 3,533. However, if the price retreats below the trendline, it could look for support around 3,439.
