HomeContributorsTechnical AnalysisUS 500 Index Flirts with 50-day SMA But Outlook Remains Negative

US 500 Index Flirts with 50-day SMA But Outlook Remains Negative

The US 500 stock index is moving slightly higher, approaching the 50-day simple moving average (SMA), holding well above the crucial 200-weekly SMA, which is acting as strong support level near 3,635. The RSI indicator is pointing slightly up near the neutral threshold of 50, while the MACD is moving sideways near its trigger and zero lines.

If price action jumps above the 50-day SMA (immediate resistance), there is scope to test the 100-day SMA around the 3,920 barrier. Clearing this key level would see additional gains towards the 200-day SMA at 4,080.

If the 3,635 support fails, then the focus would shift to the downside towards 3,500, which if breached would increase downside pressure and bring about a reversal of the trend. From here, the index would be on the path towards the 3,233 barrier, registered in October 2020.

Overall, the US 500 index has been negative in the long-term timeframe and only a climb above the 200-day SMA may change the outlook to bullish.

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