The US 500 stock index jumped above the 2812 strong barrier, which had been holding since December 3, pointing for more bullish pressures in the near term. Prices hit an almost five-month high of 2819 earlier today, however, the technical indicators seem to be overbought. The MACD is trying to recover somewhat below trigger line, while the RSI is flattening near 70 level.
In case of further gains the next resistance would likely be faced around the 2863 barrier, taken from the inside swing bottom on September 7. A jump above this region would increase positive sentiment until the all-time high of 2940, returning the medium-term outlook back to bullish.
On the other side, if the price loses momentum and retreats below the red Tenkan-sen line, it could find support at the 200-simple moving average (SMA), which is flattening currently at 2750 in the daily timeframe. Dropping below this area could take prices towards the 2675 support before hitting the 50-SMA around 2657.
In the medium-term, the index is trying to switch the neutral mode to a more bullish one after the significant rebound on the 2332 area.
