HomeContributorsTechnical AnalysisUS 500 Index Looks to be in Process of Minor Bearish Pullback

US 500 Index Looks to be in Process of Minor Bearish Pullback

The US 500 index (Cash) is retreating after pivoting from the all-time high of 3,392.21 reached on Monday. The long-term picture remains strongly bullish, however, in the very short-term, the technical indicators are suggesting a possible downside correction. The MACD is heading south in the positive territory, while the RSI is sloping down above the 50 level.

In the wake of negative pressures, the market could meet support at the 50-day simple moving average (SMA) currently at 3,270 before it heads lower to the 23.6% Fibonacci retracement level of the up leg from 2,729 to 3,392.21 at 3,235. Marginally below this level, the 3,205 and 3,180 obstacles are coming next before meeting the 38.2% Fibo of 3,138.

On the other side, a move to the upside could see immediate resistance at the record high of 3,392.21 but should the market increase positive momentum above this area, the 261.8% Fibonacci extension level of the down leg from 3,028 to 2,775 near 3,440 could follow.

Summarizing, the US500 stock index could face more upside pressure in the long-term if it surpasses the all-time high. Noteworthy, is the price, which has been developing above the ascending trend line since June 2019.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading