The US 500 stock index (cash) has been in an uptrend since mid-March, slicing through crucial technical regions such as its 50- and 200-day simple moving averages (SMAs). In addition, the index jumped to a fresh nine-month high of 4,232 in today’s session before paring some gains.
The short-term oscillators are endorsing the latest upside move. Specifically, the MACD jumped above its red signal line in the positive region, while the RSI is flatlining above its 50-neutral mark.
Should the price attempt another advance, the nine-month peak of 4,232, which overlaps with the July 2021 bottom, could act as initial resistance. Conquering this barricade, the bulls might then challenge the October 2021 low of 4,270. A violation of that zone could open the door for the August 2022 high of 4,325.
On the flipside, if the index experiences a pullback, immediate support could be found at 4,146, which is the 78.6% Fibonacci retracement of the 4,325-3,489 downtrend. Piercing through that wall, the price could challenge 4,100 before the double-bottom region of 4,048 comes under scrutiny. A break below the latter may trigger a retreat towards the 61.8% Fibo of 4,006.
In brief, the US 500 index stormed to a fresh nine-month high amid some positive developments regarding the US debt-ceiling negotiations. However, a downside correction should not be ruled out as the latest advance pushed the price above its upper Bollinger band, indicating that it approached overbought conditions.
%20has%20been%20in%20an%20uptrend%20since%20mid-March,%20slicing%20through%20crucial%20technical%20regions%20such%20as%20its%2050-%20and%20200-day%20simple%20moving%20averages%20(SMAs).%20In%20addition,%20the%20index%20jumped%20to%20a%20fresh%20nine-month%20high%20of%204,232%20in%20today%E2%80%99s%20session%20before%20paring%20some%20gains.){kind=link}