The US 100 index retreated this week, after reaching a new all-time high in late April. However, the bears have so far been unable to push the price below the 50-day simple moving average (SMA), and as long as that remains the case, the broader outlook still seems positive.
In case of further declines, a first line of support may be found near the crossroads of the 7,470 zone and the 50-day SMA, currently at 7,493. A decisive break below that area would turn the picture to a more neutral one, and open the door for a test of the 7,240 territory.
On the flipside, a rebound in the market may encounter resistance near 7,665, marked by the inside swing low on May 2, with an upside break paving the way for the all-time high of 7,858.
In short, the bigger picture is still positive, with a clear break below 7,470 and the 50-day SMA needed to change that.
