US 500 Index Achieves New All-Time High; Holds in Upward Sloping Channel

My FX Forum

Staff member
The US 500 index reached a fresh all-time high of 2939.20 earlier today and has been stuck in a channel titled to the upside since April 2. The bullish picture seems to be overstretched as the RSI indicator is flattening near the 70 level, however, the MACD oscillator posted a bullish crossover with its trigger line in the positive zone.

More upside movements and a surpass above the aforementioned all-time high could challenge the next strong psychological level of 3000. There are no significant obstacles before this handle.

If prices head lower, support could come from the 50-day simple moving average (SMA) around 2860, before being able to challenge the 23.6% Fibonacci retracement level of the upleg from 2532 to 2939.20, near 2843, which stands near the medium-term ascending trend line. A significant sell-off below this area, could shift the bullish outlook to bearish and hit the 2800 key level.

- advertisement -

To conclude, in the medium-term, the outlook remains positive since prices hold above all the moving average lines and within the upward sloping channel.