The US 500 index has come under renewed buying interest, climbing above the 40-day simple moving average (SMA) following the rebound off the 3,200 support. The MACD and the RSI are heading slightly up, supporting the upside movement.
The all-time high of 3,588.24 could be the next target, and if this gets violated, resistance could then develop around the 3,819 barrier, which is the 161.8% Fibonacci extension level of the down leg from 3,588.24 to 3,200.
If sellers drive the pair below the cloud, the 23.6% Fibonacci retracement level of the upward wave from 2,183.95 to 3,588.24, at 3,260, may provide some footing. Note that this number also overlaps with the 100-day SMA. In the event selling interest persists, the key support region of 3,200 and the 3,110 level, which stands near the 200-day SMA, could halt the decline. Should it fail to do so, the 38.2% Fibonacci of 3,053 could challenge the bears before the price moves towards 2,941.
Briefly, the US 500 index has been in a strong bullish tendency without any significant bearish actions over the last six months.
