The US 500 index recorded an all-time high of 2,701.80 during today’s trading. A positive close would mark the second straight day of advancing after gaining 0.8% on Tuesday.
The Tenkan- and Kijun-sen lines are positively aligned, with the former being above the latter. This is pointing to positive momentum in the short-term. The stochastics are also painting a bullish picture in the very-short-term: the %K line has moved above the slow %D line and both lines are heading higher.
Coming into view as potential resistance to upside movements is the 423.6% Fibonacci extension level of the downleg from 2,596.18 to 2,556.21 at 2,725.44. Further above, 2,800 has the capacity to function as a psychological barrier to stronger bullish moves.
On the downside, the range around the current level of the Tenkan-sen at 2,685.00 might act as support; the area around this level was congested recently. Steeper declines could find support around 2,661.12, this being the 261.8% Fibonacci extension of the aforementioned downleg.
The medium-term picture is clearly bullish: the index is in an uptrend – recording higher highs and higher lows – with price action taking place above the 50- and 100-day moving average lines and both lines maintaining a positive slope.
Overall, the index is looking bullish in the short- and medium-term.
