The US 500 stock index attempted to climb above the 50-day simple moving average (SMA) last week before the 2,893 barrier pushed it slightly back below the line.
While the RSI is reversing lower, the MACD and the red Tenkan-sen line have yet to show any sign of weakness, hinting that upside corrections are still possible.
Still, to confirm a sustainable upside move the bulls need to return above the 50-day SMA and more importantly run above the 2,893 peak and the Ichimoku cloud. Such an improvement could raise buying appetite probably towards the 200-day SMA currently flat at 3,018. Higher, the door would open for the March peak of 3,140, a break of which could resume a neutral profile in the medium-term picture. Yet, the bearish cross between the 50- and the 200-day SMAs provides little optimism for an outlook upgrade.
Alternatively, the 2,757-2,700 support region, where the red Tenkan-sen is currently standing, could reject the examination of the 20-day SMA at 2,640. In the event sellers persist beneath the latter, the area around the blue Kijun sen line at 2,537 could next come to the rescue.
Summarizing, although the US 500 index seems to have some bullish pressure in store, a rally above 2,893 and the Ichimoku cloud is required to confirm that.