The US 100 index is currently trading relatively close to the all-time high of 6,525.00 hit on Monday.
The bias in the short-term remains positive as indicated by the Tenkan-sen line being above the Kijun-sen one, despite the index losing some ground in the two days that preceded. However, the stochastics are suggesting that the pullback might continue in the very short-term: the %K line has crossed below the slow %D line, with both lines currently heading lower. This is viewed as a bearish signal.
Should US 100 indeed decline, support could come around the current level of the Tenkan-sen at 6,431.80. Notice that the area around this level also encapsulates a top from the recent past at 6,424.55. The Kijun-sen line, which lies not far below at 6,376.95, might provide additional support in the event of sharper declines.
On the upside, resistance could occur around the record high of 6,525.00 from earlier in the week. A break above might spur bullish sentiment and lead to further advancing, with 7,000 being a psychological landmark that could pose a barrier further above.
The index is in an uptrend, with price action taking place above both the 50- and 100- day moving averages and both MAs moving higher. All these are pointing to a picture in the medium-term that is clearly bullish.
Overall, US 100’s short-term bias and medium-term outlook are positive, though a fall in the very short-term is not to be ruled out.
