US 500 Index Surges to Almost 2-Year High

• US 500 index posts 5-day bullish rally
• Technical oscillators look overbought

The US 500 index (cash) stormed higher after validating the previous high of 4,607. Although, the price jumped to its highest level since January 2022 at 4,728, extending the strong rebound off 4,100 that it has last October.

Technically, the RSI climbed above the 70 level with strong momentum, and the MACD oscillator is crossing above its trigger line well above the zero level. Both indicate an overstretched market and a potential bearish correction.

If the bullish pressures persist, the price could revisit the record high of 4,817, while a jump above this area could take the index into uncharted territory, meeting the next psychological numbers such as 4,900 and 5,000.

Alternatively, should the bears attempt to push the price lower, initial declines could cease at the recent support of 4,607. Diving below that floor, the price may descend towards the 4,540 bottom ahead of the 100- and the 50-day simple moving averages (SMAs) around 4,420. Marginally below these lines, the 4,400 support is standing and then the 4,340 support is coming next. Also, the 200-day SMA at 4,321 is acting as a strong barricade for traders.

In brief, the US 500 index has exhibited strong upside momentum; however technical oscillators are looking overbought.