The US 500 (cash) index is losing some momentum around the 4,050 level but it remains above the medium-term uptrend line and also well above the long-term descending trend line. The index failed to surpass the 4,200 round number with the technical oscillators suggesting that more gains may be on the cards. The RSI is resting near the neutral threshold of 50 after the fall from 70 level, while the MACD is heading south below its trigger line in the positive territory.
The 4,200 number is the nearest resistance that could reject any attempt higher. If not and the price extends positive momentum, the 4,325 barrier, registered back in August 2022 could take over ahead of the 4,600 hurdle.
On the flip side, a downside reversal below the 4,000-4,050 support region and the ascending line could bring the 50- and the 200-day simple moving averages (SMAs) at 3,980 and 3,940 respectively. Should it fail to hold, the 100-day SMA at 3,910 would be the next target, while a steeper decline could also reach the 3,885 barrier, where any violation would raise fears over a down-trending market.
In the medium-term window, the sentiment is turning positive following the break above 4,000 and the key resistance trendline which re-activated the uptrend off the 3,500 low. A closing price above 4,200 would confirm the outlook reversal.
