The US 100 index has advanced considerably, managing to finish higher in the seven preceding trading days after recording a one-month low of 6,641.85 on March 2. Earlier on Tuesday, it hit a fresh all-time high of 7,185.15.
The RSI has been rising lately, projecting a bullish picture in the short-term. However – and turning to the stochastics – the %K line has just crossed below the slow %D line. This might constitute an early indication for declines in the very short-term.
Further advancing could meet resistance around the 161.8% Fibonacci extension level of the February 27 to March 2 downleg at 7,224.56. The 7,200 handle that may hold psychological importance is also part of the area around this level.
On the downside, support might come around 7,037.10, this being a previous top with the range around it also encapsulating the 7,000 handle – another potential psychological level – as well as another peak from the past at 7,002.05.
The medium-term picture is looking bullish, with price action taking place above the 50- and 100-day moving average lines, and both lines maintaining a positive slope.
Overall, both the short- and medium-term outlooks are looking positive, with a bearish signal though currently in place in the very short-term.
