The US 500 index (cash) is approaching the spike that it posted on November 9, reaching a fresh all-time high of 3,674.11.
As the price jumped above the 3,589 barrier, the expectation is a retest of the record peak before moving into uncharted paths. The upside rally could then pause at psychological levels such as 4,000 and 4,500.
The technical indicators are currently endorsing the bullish outlook as the RSI is heading towards the overbought threshold, while the stochastic %K line turned up after the decline from the 80 level. The simple moving averages (SMAs) are moving slightly horizontally in the medium-term outlook.
However, if the price retreats, it could touch the 50- and 100-day SMAs at 3,408 and 3,359 respectively, surrounding the Ichimoku cloud. Even lower, the 23.6% Fibonacci retracement level of the upward wave from 2,183.95 to 3,674.11 at 3,322 could attract attention ahead of 3,200.
Concluding, in the short-term, the US 500 index has been in a bullish outlook after it penetrated above the consolidation area of 3,200-3,589 in the preceding week. In the long-term, the view has been strongly positive since March.
