The US 30 index (cash) created five straight positive days after the bounce off the 200-day simple moving averages (SMAs) around the 26,077 support level. Over the last four months, the price has been developing within a slightly bearish channel and the technical indicators are mixed. The MACD is standing near the zero level, while the RSI is extending its bullish movement above the neutral threshold of 50.
Further increases could take the bulls towards the 29,224 resistance before revisiting the all-time high at 29,582.61. More advances could send the price into uncharted territory, flirting with the 30,000 round number.
In case the index changes its current upside direction to the downside, the bears will probably challenge the 50- and 100-day SMAs at 27,885 and 27,325. A break lower could last until the 23.6% Fibonacci retracement level of the up leg from 18,145 to 29,224 at 26,582. Even lower, the area around 26,077 and the 200-day SMA could be another potential obstacle for downward moves. Steeper declines could send the market until the 38.2% Fibonacci of 24,979.
Summarizing, the US 30 index maintains a bullish bias in the long-term picture, whereas in the medium-term it holds a somewhat negative profile.
