The US 500 index has advanced considerably – as it found a strong support at the 50-day simple moving average (SMA) – and is heading towards the all-time high of 3,337.64.
Looking at momentum indicators, the RSI is sloping up slightly above its neutral threshold of 50, suggesting that the market could keep rising in the near term. The rising MACD also supports this view, currently in the positive territory attempting to embrace its red signal line.
A further move to the upside could see immediate resistance at the record high of 3,337.64 but should the market increase positive momentum above this area, the 261.8% Fibonacci extension level of the down leg from 3,028 to 2,775 near 3,440.
In the wake of negative pressures, the market could meet support at the 50-day SMA currently at 3,227 before it heads lower to the 3,205 support and the 23.6% Fibonacci retracement level of the up leg from 2,729 to 3,337.64 at 3,193. Marginally below this level, the 3,180 is holding and the 100-day SMA at 3,125 is in the spotlight.
Overall, the US500 stock index could face more upside pressure in the long-term if it surpasses the all-time high.
