The US 500 index (cash) is retreating from the record high of 3,705.39, reached earlier today. The technical indicators are currently suggesting a possible retracement in the short-term. The RSI pulled back from the overbought territory, while the %K line of the stochastic oscillator posted a bearish crossover with the %D line above the 80 level.
If the price falls further, it could touch the 3,589 barrier before heading south towards the 50- and 100-day simple moving averages (SMAs) currently at 3,500 and 3,428. Even lower, the 23.6% Fibonacci retracement level of the upward wave from 2,183.95 to 3,705.39, at 3,346 could be a crucial barrier for the bears.
If the price jumps above the all-time high, the expectation is a move into uncharted paths. The upside rally could then pause at the psychological levels such as 4,000 and 4,500.
Concluding, in the short- and long-term timeframes, the US 500 index has been in a strongly bullish outlook. If traders sink beneath the 200-day SMA around 3,164, this could shift the view to neutral.
